TSX ended higher amid G7 summit, Israel-Iran tensions

Published 06/16/2025, 07:04 AM
Updated 06/16/2025, 04:18 PM
© Reuters

Investing.com -Canada’s main stock index ended higher driven by G7 summit enthusiasm and investor resilience despite a recent spike in violence in the Middle East,

At close, the Toronto Stock Exchange’s S&P/TSX composite index was up 0.24% at 26,568.61 points, rebounding from last trading week, in which it shed 0.42% to close at 26,504.35 points.

Israel’s attack on Iran on Friday sparked a surge in oil prices, as traders fretted over the impact of the conflict on shipping through the vital Strait of Hormuz. Gold’s traditional reputation as a safe haven in times of economic or geopolitical uncertainty was also burnished, bolstering prices in the yellow metal.

U.S. mixed

U.S. stock index edged higher Monday, attempting to recover some ground the previous week’s sharp losses and ahead of a Federal Reserve interest rate decision later in the week.

The Dow Jones Industrial Average gained 317 points, or 0.75%, to 42,515.09, the S&P 500 was 1.12% lower at 5977, and the NASDAQ Composite gained 261.80 points, or 1.92%, to 19,701.63.

The main averages on Wall Street sank on Friday following a bout of airstrikes between Israel and Iran.

Iran-Israel conflict escalates

Israel and Iran continued to exchange missile strikes over the weekend, and into Monday, ramping up the geopolitical uncertainty in the Middle East.

Tehran has told mediators Oman and Qatar that it will not engage in ceasefire talks helmed by the U.S. while Israel is carrying out its strikes, Reuters has reported, citing an official briefed on the matter.

Israel, meanwhile, has warned Iranians living near nuclear facilities to evacuate. The country targeted these locations and other ballistic missile programs in a wave of attacks first launched early on Friday.

G7 summit

The conflict between Israel and Iran is set to be high on the list of priorities at a meeting of leaders from the Group of Seven nations in Canada this week.

Media reports said that the representatives are planning to issue a joint statement on the situation urging both sides to deescalate.

German Chancellor Friedrich Merz said he will aim for the summit to conclude that while Iran cannot develop its nuclear weapons capabilities and ensure Israel’s right to defend itself, there is still space for diplomacy.

Officials will also likely be treading carefully to avoid falling out with U.S. President Donald Trump, particularly as Washington conducts ongoing negotiations with a host of nations over Trump’s punishing "reciprocal" tariffs.

Canadian Prime Minister Mark Carney has stressed that the summit will push for peace and security, although he has suggested that Ottawa could hit back at the U.S. if the White House does not lift its tariffs on steel and aluminum.

Gold retreats

Gold prices fell slightly on Monday amid some pressure from a strong dollar, although bullion was sitting on strong gains as a worsening Israel-Iran tensions boosted haven demand.

The yellow metal saw some profit-taking on Monday after a nearly 4% jump last week, while strength in the dollar, before a Federal Reserve meeting later this week, also pressured metal prices across the board.

Crude choppy

Meanwhile, oil prices fell, handing back earlier gains as traders digested the ongoing conflict between Israel and Iran.

By 4.30 ET, Brent crude futures had dropped by 1.91% to $72.81 per barrel, while U.S. West Texas Intermediate crude futures fell 2.05% to $69.83 a barrel. Both of the contracts had soared by over $4 earlier in the session.

 

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