FX.co ★ TSX Futures Dip as Oil Surge Sparks Inflation Fears

Futures tied to the S&P/TSX Composite Index edged lower on Friday as rising oil prices—driven by escalating conflict in the Middle East and disruptions in the Strait of Hormuz—rekindled inflation concerns. The increase in energy costs pushed Canadian bond yields higher, heightening credit worries for banks and weighing on the financial sector, even as it provided support for energy shares. At the same time, a stronger US dollar and climbing US Treasury yields pressured gold prices, dragging mining stocks lower. Separately, pipeline operator South Bow announced plans to restart portions of the Keystone XL project, a move that could lift Canada’s crude exports to the United States by more than 12%.