Canadian energy and uranium stocks moved sharply higher on Wednesday as geopolitical tensions linked to the Strait of Hormuz continued to support oil prices and accelerate institutional interest in nuclear energy alternatives. Cameco Corporation (TSX: CCO) was among the top performers on the TSX, gaining over 8% on the session after finishing the day near $172.88. Canadian oil sands producers including Suncor Energy (TSX: SU) and Cenovus Energy (TSX: CVE) also advanced, rising approximately 0.5% and 1.4% respectively. Canadian Natural Resources (TSX: CNQ) added modest gains on the renewed oil price bid.

The primary macro trigger is the ongoing blockade of the Strait of Hormuz, which Iran reimposed following a breakdown in U.S.-Iran peace talks. According to the International Energy Agency, the disruption to shipping through the strait — affecting an estimated 9.1 million barrels of oil per day — qualifies as the largest supply disruption in history. While U.S. President Trump extended the ceasefire indefinitely following the collapse of Pakistan-hosted talks, the Hormuz blockade remained in place, keeping energy markets on edge. Uranium long-term contract prices also climbed to $90 per pound in Q1 2026, a level not seen since 2008, underpinned by rising utility contracting activity and a $2.6 billion supply agreement Cameco signed with India’s Department of Atomic Energy.

For TSX investors, the Strait of Hormuz situation creates divergent outcomes across sectors. Canadian oil sands producers benefit directly from sustained elevated oil prices, while uranium and nuclear energy stocks like Cameco receive a secondary boost as energy security concerns prompt governments to accelerate nuclear deployment. Cameco’s 49% stake in Westinghouse Electric — which has partnered with the U.S. government to build at least $80 billion in new AP1000 reactors — gives the company exposure to the nuclear supply chain well beyond uranium mining.

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The near-term outlook for both segments depends heavily on how long the Hormuz disruption persists. A resolution in Iran talks would likely pull both oil prices and uranium sentiment lower in the short term, creating a tactical risk for energy-sector longs.

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However, the structural case for Canadian uranium producers remains intact regardless of the geopolitical backdrop — analysts project Cameco’s earnings per share to grow to $2.30 by 2028. Investors with longer horizons should watch Cameco’s forthcoming Q1 earnings call for commentary on production guidance and contract backlog depth.