20.04.202612:39:35UTC+00TSX Drops on US-Iran Tensions and Higher Annual Inflation

Futures tracking the S&P/TSX Composite Index declined on Monday as mounting concerns over a potential breakdown of the US–Iran ceasefire unsettled markets, while persistent inflation kept upward pressure on interest rates. The United States seized an Iranian vessel and Tehran vowed retaliation, and Iran briefly lifted but then reimposed its blockade of the Strait of Hormuz. Tehran also ruled out a second round of negotiations before the ceasefire expires on April 21st.

Oil prices jumped on renewed shipping disruptions, reviving stagflation worries and weighing on the banking outlook amid elevated rates and weak credit demand. Higher borrowing costs were further driven by a sharp rise in domestic inflation, which accelerated to 2.4% in March as the Middle East conflict pushed up transportation expenses. Gold miners retreated as US Treasury yields moved higher, while energy producers were poised to rebound in step with the global upswing in oil prices.