TSX Pulls Back Amid Renewed US-Iran Tensions
2026-05-26 20:19
By
Isabela Couto
1 min. read
The S&P/TSX Composite Index fell 0.5% to close at 34,654 on Tuesday after reaching a record high in the previous session, as hopes for a resolution to the Middle East conflict faded following fresh US military strikes in Iran.
The latest attacks renewed uncertainty over when the Strait of Hormuz could reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates.
Banks traded lower, with Royal Bank of Canada down 0.7% and TD Bank losing 0.7%.
Canada’s largest lenders are set to report quarterly earnings this week, with profits expected to rise despite trade tensions, the Middle East conflict, and broader macroeconomic uncertainty, though risks tied to weaker consumer finances and a softer housing market remain elevated.
Heavyweight mining stocks also declined as gold prices slipped, with Barrick down 0.9%, Wheaton Precious Metals losing 2.4%, and Agnico Eagle shedding 1.7%.