Futures tracking the S&P/TSX Composite Index declined on Thursday as conflicting signals over the Middle East conflict kept investors on edge. President Trump said Tehran was seeking a deal, a claim contradicted by Iran’s foreign minister, who stated that while his country was reviewing Washington’s proposal, it had no intention of entering talks. The contradictory messages left markets unsure about the outlook for restoring crude flows through the Strait of Hormuz.
Oil prices rose on fears that prolonged hostilities could further disrupt energy supplies. The renewed surge in crude rekindled stagflation concerns, driving bond yields higher and weighing on credit demand and Canada’s major banks. The conflict‑driven jump in oil, with no clear resolution in sight, also risked complicating central banks’ interest rate paths.
By contrast, energy stocks benefited from the higher oil prices, while lower gold prices put pressure on mining shares. Elsewhere, JPMorgan initiated coverage of Alimentation Couche‑Tard with an “overweight” rating and cut TD Cowen to “hold” from “buy.”
