The S&P/TSX Composite Index climbed nearly 0.5% on Friday to trade above 34,000, moving closer to its record highs from February after Iran confirmed that the Strait of Hormuz would remain open. Foreign Minister Abbas Araghchi stated that full commercial access will be maintained for the duration of the ceasefire.
The announcement triggered a sharp drop in oil prices and a decline in bond yields, providing support to financials. Among the major banks, BMO and Scotiabank each advanced about 1%, while RBC and TD gained roughly 0.5%.
Gold prices inched higher, bolstering the materials sector. Agnico Eagle and Barrick each rose more than 1%, and Wheaton Precious Metals (WPM) gained over 3%.
In contrast, energy stocks came under pressure. Canadian Natural Resources and Suncor each fell around 6%, Cenovus dropped 7.5%, and Whitecap declined about 5%.
Looking ahead, investors are focused on next week’s earnings reports from Waste Connections and Fairfax Financial, which will offer fresh insight into corporate resilience amid ongoing geopolitical headwinds related to the Iran conflict.
