FX.co ★ TSX Muted as Iran Tightens Strait of Hormuz Blockade

The S&P/TSX Composite Index hovered around the flat line near 34,000 on Thursday as heightened geopolitical tensions in the Middle East weighed on sentiment. Iran tightened its control over the Strait of Hormuz, reviving concerns about disruption to global shipping lanes amid no progress on peace negotiations. On Wednesday, Iranian forces seized two vessels attempting to exit the Strait and demanded that the United States lift its naval blockade, which remains in place despite President Trump’s decision to extend an indefinite ceasefire.

Oil prices moved higher on the escalating tensions, stoking fears of energy-driven stagflation and renewed pressure for interest rate hikes. Shares of major banks, including Royal Bank of Canada and BMO, were subdued. Gold prices declined, dragging down mining stocks; Agnico Eagle slipped nearly 1%.

In corporate news, Waste Connections jumped more than 6% after reporting first-quarter 2026 earnings that beat expectations on Wednesday. Fairfax Financial, down 0.1%, is slated to report results later today. By contrast, energy producers advanced alongside crude, with Canadian Natural gaining nearly 1%.