The S&P/TSX Composite Index climbed more than 0.5% on Tuesday, trading above the 36,000 level, as oil prices extended their decline ahead of potential US–Iran talks at this week’s UN meeting. Iran has reportedly offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps to ease military pressure. The retreat in oil prices—after a rally that has intensified inflationary pressures and driven major central banks to raise interest rates—provided support for credit-sensitive stocks. Shares of RBC, TD Bank, and Scotiabank each advanced nearly 0.5%.
At the same time, Bank of Canada Governor Tiff Macklem cautioned on Monday that US tariffs could slow fourth-quarter growth to below 1%, stressing that upcoming rate decisions will have to weigh weakening economic momentum against rising energy costs linked to the conflict involving Iran.
Elsewhere, mining stocks were mostly higher despite volatile gold prices, with Agnico Eagle and Barrick both adding roughly 1%. In contrast, energy producers declined as they tracked the drop in crude prices.
