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2026.05.2813:09:31UTC+00TSX Futures Inch Down on Renewed US-Iran Tensions

Futures tracking the S&P/TSX Composite Index slipped on Thursday, as renewed tensions in the Middle East dampened hopes for a peace accord and investors assessed earnings from major banks. Iran struck a U.S. air base after Washington targeted what it described as an Iranian drone facility near the Strait of Hormuz. Oil prices rebounded from their recent pullback, reinforcing persistent stagflation concerns.

In corporate news, Royal Bank of Canada, the country’s largest lender, posted higher second-quarter earnings, with heightened market volatility driving stronger trading revenue. Toronto-Dominion Bank also reported a rise in adjusted quarterly profit, supported by robust net interest income.

Elsewhere, mining shares remained under pressure as gold prices declined to their lowest level in nearly two months. Bond yields climbed after U.S. PCE inflation in April rose at its fastest pace in three years, propelled by higher energy costs amid the conflict with Iran, reinforcing expectations for a more hawkish policy stance.

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