The S&P/TSX Composite Index reversed early losses to finish 0.5% higher at 33,108 on Thursday, mirroring a rebound in US equities after reports that Iran may allow some oil shipments from the Persian Gulf eased stagflation fears for the Canadian economy. Iranian media reported that officials are working on a toll mechanism for tankers departing the Persian Gulf, a development that helped calm worries that a supply shock in energy markets would intensify inflationary pressures and compel the Bank of Canada to keep interest rates restrictive for longer. The improved outlook supported equities on the Toronto exchange. Energy heavyweights led the advance as benchmark crude prices climbed to their highest levels in 18 years, with Cenovus and Canadian Natural gaining about 3% and 2%, respectively. The Toronto Stock Exchange will be closed on Friday for the Good Friday holiday.