Canada's TSX stock index futures decline, Iran's peace efforts make little progress

Investing.com - On Thursday, futures linked to major stock indices with high Canadian commodity weights declined, oil prices rose, and gold fell, as market hopes for a resolution to the Iran conflict dimmed.

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As of 8:23 a.m. Eastern Time (8:23 p.m. Beijing Time), the S&P/Toronto 60 Index standard futures contract fell 18 points, down 0.9%.

The S&P/TSX Composite Index rose 1.4% on Wednesday, reaching its highest close since March 17, extending its recent three-day winning streak.

U.S. Futures Decline

On Thursday, U.S. stock index futures declined. As of 8:36 a.m. ET (8:36 p.m. Beijing Time), Dow futures dropped 407 points, down 0.9%, S&P 500 futures fell 62 points, down 0.9%, and Nasdaq 100 futures declined 270 points, down 1.1%.

Major Wall Street indices rose in the previous trading session, driven by hopes that the U.S. and Iran might be willing to negotiate to end the nearly month-long conflict. Media reports indicated that Tehran privately expressed willingness to dialogue with Washington, and U.S. Vice President Vance is reportedly planning to visit Pakistan for negotiations as early as this weekend.

Meanwhile, The Wall Street Journal reported that, as communication continues, the U.S. and Israel may temporarily delay attempts to assassinate Iran’s foreign minister or parliamentary speaker.

However, as has been the case most of the time during this conflict, information remains chaotic. The two sides appear far apart on conditions for stopping hostilities, and the Pentagon continues deploying more ground troops to the Middle East.

U.S. President Trump said Iran’s negotiating team has been “very different and ‘strange’,” adding that Tehran is “pleading” with the U.S. to reach an agreement to end the nearly month-long Middle East conflict.

In a social media post Thursday morning, Trump stated that Iran should work to reach an agreement with Washington, reaffirming the White House’s recent statement that Tehran’s military capabilities have been “completely destroyed” by joint U.S.-Israeli efforts.

“They better take it seriously soon, or it will be too late, because once that happens, there’s no turning back, and it won’t look good!” Trump wrote.

Oil Prices Hover Above $100

As traders try to interpret the numerous developments in the Middle East, oil prices again hovered above the $100 per barrel mark.

Global benchmark Brent crude futures for May delivery rose 5.0%, to $107.37 per barrel. U.S. WTI crude futures also increased 4.9%, to $94.73 per barrel.

Markets are broadly concerned that an energy shock could reignite inflation pressures worldwide, prompting central banks to consider interest rate hikes. The Organization for Economic Co-operation and Development warned that if energy prices continue to surge due to ongoing conflict, inflation could accelerate and economic growth could be hindered.

Gold Declines

Supported partly by prospects of rising interest rates, the dollar continued to strengthen, reinforcing its recent role as a safe-haven asset during crises, while global government bond yields rose.

Against this backdrop, spot gold fell 1.5%, to $4,436.21 per ounce. Gold futures declined 2.7%, to $4,464.20 per ounce.

Earlier this week, gold rebounded after a sharp correction, climbing above $4,500 per ounce on the back of a weaker dollar and initial optimism about U.S.-Iran diplomatic efforts.

“In the short term, gold is trading within a clear range. The market needs a break above and hold around the mid-$4,500 level to change the tone. Until then, rebounds may face resistance and turn into selling opportunities,” Max Baecker, President of Hartford Gold, told Investing.com.

Reports indicate Iran is reviewing the 15-point peace proposal from the U.S., but the White House warned that if Iran does not reach an agreement, more airstrikes will target the country. White House Press Secretary Karoline Leavitt said Trump “won’t bluff, and is ready to unleash hell,” but The Wall Street Journal reported that the president has told aides he wants to end the war quickly.

Vital Knowledge analysts emphasized that the Trump administration has announced the official dates for the president’s visit to China as May 14-15, which may suggest the U.S. expects the war to be fully over by then.

Crucially, amid a wave of reports and rumors, the Strait of Hormuz remains effectively closed. This vital waterway, accounting for about 20% of the world’s oil and natural gas flows, has been largely shut for weeks due to threats of Iranian attacks. Oil prices, which surged earlier this month to nearly $120 per barrel, have pulled back but remain well above pre-war levels from late February.

Israeli Defense Minister Israel Katz stated that the Israeli military killed Iran’s Revolutionary Guard Navy Commander Alireza Tangsiri during a nighttime airstrike. Katz claimed Tangsiri was “directly responsible” for laying mines that caused the blockade of the Strait of Hormuz.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.