TSX Edges Lower as Oil Prices Rise on US-Iran Tensions

The S&P/TSX Composite Index edged lower on Tuesday as fading hopes for a US-Iran peace deal lifted oil prices and weakened risk appetite. Oil prices advanced after renewed disagreements between Iran and the US over a proposed peace framework revived concerns about supply disruptions, keeping stagflation fears in focus. Banks traded lower, with BMO down 1% and TD Bank losing 0.5%. BMO announced an agreement to sell its transportation and vendor finance businesses to Stonepeak. Meanwhile, gold prices declined as a stronger US dollar and inflation data that came in slightly above expectations clouded the outlook for US interest rates. Barrick and WPM both fell more than 1%. Elsewhere, Chemtrade Logistics dropped nearly 5% after reporting first-quarter results below estimates, while Organigram plunged more than 14% following a sharper-than-expected decline in net revenue. Constellation Software (-0.4%) and Franco-Nevada (-0.5%) are set to release Q1 2026 earnings after the close.

Futures tracking the S&P/TSX Composite Index edged lower on Tuesday as fading hopes for a US-Iran peace deal lifted oil prices and weakened global risk sentiment. Crude prices rose after renewed disagreements between Tehran and Washington over a proposed peace framework revived concerns about supply disruptions. Elevated energy costs kept stagflation fears in focus, weighing on financial stocks and the broader market. Meanwhile, gold prices declined as the US dollar strengthened following inflation data that came in slightly above expectations, clouding the outlook for US interest rates. In other news, Bank of Montreal signed an agreement to sell its transportation and vendor finance businesses to Stonepeak. Chemtrade Logistics reported first-quarter revenue and EBITDA below estimates, while Organigram posted a sharper-than-expected decline in second-quarter net revenue. Constellation Software and Franco-Nevada are both set to release Q1 2026 earnings results after the market close.

The S&P/TSX Composite Index gained 0.2% to close at 34,139 on Monday, supported by strong gains in the mining sector. Barrick Mining surged 9.1% after beating estimates for first-quarter profit, as higher gold prices helped offset lower production. Other miners also advanced, with Agnico Eagle up 1.9% and Wheaton Precious Metals gaining 3.6%. Meanwhile, oil prices rose on renewed supply concerns after US President Donald Trump rejected Iran’s response to a proposed peace agreement. Energy producers tracked crude prices higher, with Canadian Natural rising 1.4% and Suncor Energy adding 1.7%. Still, elevated energy costs kept stagflation concerns in focus, weighing on financial stocks. Royal Bank of Canada fell 0.6%, while Brookfield lost 1.7%. Elsewhere, Shopify dropped 6.9%.