Futures tracking the S&P/TSX Composite Index fell sharply on Friday as persistent uncertainty over a Middle East resolution kept investors on edge. US President Donald Trump extended the deadline for Iran to reopen the Strait of Hormuz to April 6, warning that the country’s energy infrastructure would come under attack if it failed to comply. Oil prices climbed further on war-related supply concerns, amplifying worries about stagflation. Canadian government bond yields rose in response to mounting inflationary pressures, as markets increasingly priced in a more hawkish stance from major central banks. That shift weighed on banking stocks, with investors anticipating potential headwinds to credit demand. By contrast, higher oil and gold prices underpinned gains among energy producers and miners in the resource-heavy Canadian market. Elsewhere, the Bank of Canada cautioned on Thursday that it faces a difficult task managing structural changes that are set to permanently reshape the country’s economic landscape.