The S&P/TSX Composite Index soared 294 points to close at 34,346 on Friday, marking a 0.86% gain as Iran’s announcement to reopen the Strait of Hormuz triggered widespread relief across Canadian markets. The move ended weeks of supply disruption that had constrained nearly 20% of global oil shipments through the critical Middle East waterway.
Iran’s Foreign Minister Abbas Araghchi declared the strait completely open for commercial vessels in line with the Lebanon ceasefire. The announcement sent shockwaves through energy markets, with crude oil prices plunging 11.4% to $83.85 per barrel for WTI and 9% to $90.38 per barrel for Brent. Despite the dramatic oil sell-off, Canadian financials rallied sharply as the S&P/TSX Capped Financial Index jumped 1.49%, led by major banks benefiting from lower geopolitical risk and improving economic outlook.
Mining stocks emerged as the week’s biggest winners, with the TSX posting a 3.7% weekly gain. Avino Silver and Gold Mines climbed nearly 8% alongside NovaGold Resources, capitalizing on continued safe-haven demand for precious metals. Energy stocks faced mixed results as the sector grappled with crude’s sharp reversal. Vermilion Energy and Canadian Natural Resources declined despite earlier gains from elevated oil prices, while investors repositioned portfolios following the geopolitical shift.
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Market participants remain cautious about the sustainability of the Strait reopening, particularly after Iran closed it again on April 18 in response to the U.S. naval blockade remaining in force. President Trump indicated most negotiation points are settled, but the blockade will continue until talks conclude.
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Investors should monitor commercial shipping volumes through Hormuz and watch for earnings reports from Waste Connections and Fairfax Financial next week to gauge corporate resilience through the crisis period.
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