FX.co ★ TSX Futures Drop as US-Iran Ceasefire Threatens to Unravel

Futures tracking the S&P/TSX Composite Index declined on Monday as mounting concerns over a potential breakdown in the US–Iran ceasefire unsettled markets. The US seizure of an Iranian vessel prompted Tehran to vow retaliation, while Iran briefly lifted, then reinstated, its blockade of the Strait of Hormuz. Tehran also ruled out a second round of talks before the ceasefire’s April 21 expiry.

Oil prices jumped on renewed shipping disruptions, reviving stagflation worries, pushing bond yields higher, and weighing on financials and the broader index. At the same time, gold prices pulled back, dragging down mining shares. Energy producers, however, are poised to rebound on the surge in crude.