08.07.202612:40:38UTC+00TSX Futures Fall as US-Iran Tensions Escalate

Futures tracking the S&P/TSX Composite Index declined on Wednesday as renewed tensions between the United States and Iran pushed oil prices higher. US President Trump stated that the memorandum of understanding with Iran aimed at ending the conflict was “over,” reigniting worries about potential disruptions to global energy supplies. The resulting rise in oil prices stoked concerns about energy-driven inflation and the prospect of higher interest rates, pressuring financial stocks and the broader market. Mining shares also weakened as gold prices edged lower, while Trilogy Metals reported a wider loss for the second quarter. Investors were also awaiting the minutes from the Federal Reserve’s June meeting for further signals on the outlook for US monetary policy. Markets continued to anticipate that the Bank of Canada would leave interest rates unchanged at its July 15 meeting.