The S&P/TSX Composite Index fell 0.9% to close at 34,936 on Wednesday, as renewed US–Iran tensions fueled risk aversion. President Trump said the memorandum of understanding with Iran aimed at ending the conflict was “over,” reigniting concerns about potential disruptions to global energy supplies.
Rising oil prices stoked fresh fears of energy-driven inflation and the prospect of higher interest rates, concerns that were reinforced by minutes from the Fed’s June meeting showing policymakers saw a case for further rate hikes if inflation remains elevated.
Financials weighed on the index, with Royal Bank of Canada (RBC) down 1.8%, Toronto-Dominion Bank (TD) off 2.6%, and Bank of Montreal (BMO) declining 2.4%. Mining stocks also faced selling pressure as gold prices slipped: Agnico Eagle fell 3.7%, Barrick Gold lost 3.4%, and Wheaton Precious Metals (WPM) dropped 4%.
In corporate news, Trilogy Metals sank 3.5% after reporting a wider second-quarter loss. By contrast, Ivanhoe Mines gained 1.1% after announcing that copper production at its flagship complex is expected to increase in the second half of 2026.
Elsewhere, Air Canada slipped 2.1% after the airline said Anko van der Werff would take over as CEO.
