FX.co ★ TSX Futures Edge Down on Middle East Tensions

Futures tracking the S&P/TSX Composite Index slipped slightly on Thursday amid escalating tensions in the Middle East, while uncertainty surrounding the reopening of the Strait of Hormuz drove oil prices higher. US President Trump warned of a possible major escalation in the conflict with Iran if peace negotiations fail, adding that US military assets will remain stationed in the region until an agreement is reached. The surge in oil prices rekindled inflation concerns on fears of a supply-driven shock, pushing bond yields higher and reviving worries about weaker credit demand and potential interest rate hikes, which pressured banking stocks. In contrast, the rise in oil and gold prices provided support for the energy and mining sectors.