TSX Futures Inch Down as Iran Tightens Strait of Hormuz Blockade

The S&P/TSX Composite Index traded near flat around 34,000 on Thursday as Iran tightened its grip on the Strait of Hormuz, renewing shipping concerns with no sign of resumed peace talks. On Wednesday, Iran captured two ships attempting to exit the Strait and demanded the US lift its naval blockade, which remains in effect despite US President Trump's indefinite ceasefire extension. Oil prices rose, fueling fears of energy-driven stagflation and potential rate hikes. Major bank shares, including Royal Bank of Canada and BMO, were muted. Gold fell, pressuring mining stocks; Agnico Eagle lost nearly 1%. In other news, Waste Connections surged over 6% after reporting Q1 2026 earnings above expectations on Wednesday. Fairfax Financial, down 0.1%, is scheduled to release results today. In contrast, energy producers gained on rising oil prices, with Canadian Natural up nearly 1%.

Futures tracking the S&P/TSX Composite Index edged down on Thursday as Iran tightened its grip on the Strait of Hormuz, renewing shipping concerns with no sign of resumed peace talks. On Wednesday, Iran captured two ships attempting to exit the Strait and demanded the US lift its naval blockade, which remains in effect despite President Trump's indefinite ceasefire extension. Banks are set to open lower amid fears of energy-driven stagflation and potential rate hikes. Gold fell, pressuring mining stocks. In other news, Waste Connections reported Q1 2026 earnings above expectations after the bell on Wednesday, while Fairfax Financial is scheduled to release results today.

The TSX Composite Index rose 0.4% to close at 33,955 on Wednesday, lifted by gains in energy and mining sectors and US President Trump's announcement of an indefinite Iran ceasefire extension. Despite tentative diplomatic optimism, oil prices climbed after gunfire attacks on container ships in the Strait of Hormuz. Energy producers advanced, with Canadian Natural up 0.9% and Suncor gaining 1.1%. Gold also rose, supporting miners as Agnico Eagle added 0.4% and Barrick advanced 0.6%. Banks traded lower amid rising oil prices, which renewed stagflation fears and lifted bond yields; Royal Bank of Canada shed 0.6% and TD Bank fell 0.8%. Also, Waste Connections reported better-than-expected Q1 results after the bell, shares closed down 1%. On the trade front, Canada's negotiator to the US said a July resolution of all North American trade pact issues was unlikely.