Canadian stocks moved lower on Wednesday, extending the losses from two previous sessions amid the ongoing Strait of Hormuz closure while traders analyzed the interest rate decisions by the central banks of Canada and the U.S.
After opening below yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative before settling at 33,318.39, down by 265.95 points (or 0.79%).
Only two of the 11 sectors posted gains today, with the energy sector leading the pack and the IT sector recording an incremental addition.
The ongoing war between the U.S. and Iran has left the Strait of Hormuz blocked since the war began on February 28, pushing oil prices higher to levels not seen in four years.
First, Iran closed the strait immediately after the war began and later U.S. President Donald Trump ordered a naval blockade on all ships heading to and from Iran's ports.
Despite a ceasefire holding, measures to resolve the crisis through diplomatic channels have not yielded enough.
After Trump cancelled the second round of peace talks last weekend, Iran rushed up with a peace plan. However, Trump declined the proposal, which wanted the discussions on Iran's nuclear programs to be held at a later date.
Yesterday, at the conclusion of a special meeting convened to discuss the Middle East crisis, the Gulf Cooperation Council warned Iran against its attacks on neighboring nations and urged it to take serious efforts to regain trust. The GCC also called the blocking of the Strait of Hormuz "illegal."
Pressured by the U.S. as well as its neighbors, Iran is preparing a revised proposal to submit to the U.S. through intermediaries.
In an exclusive report, Axios stated that during a crucial meeting with top executives from the oil and gas industry at the White House today, Trump hinted at the possibility of a lengthy blockade on oil transit across the Strait of Hormuz.
The discussion centered around the measures needed to minimize the impact on the U.S. consumers.
Currently, average gasoline price is hovering at $4.23 per gallon in the U.S.
In the U.S., the Federal Reserve kept its benchmark interest rates unchanged (in the 3.50% to 3.75% range) owing to rising inflation.
In Canada, holding a hawkish stance, the Bank of Canada held its target for the overnight rate at 2.25%, with the bank rate at 2.50% and the deposit rate at 2.20%.
Amid unclear geopolitical conditions, the BoC refrained from offering a precise clue on future interest rates.
The Canadian economy is facing challenges due to increasing oil prices following the gulf war and the uncertainty surrounding the U.S. trade policies with other nations.
The central bank's quarterly forecast anticipates inflation to peak in April at around 3.00% and assumes a fall in crude oil prices to $75 per barrel by the middle of next year.
The revised forecasts by the BoC predicts a GDP growth rate at 1.20% this year and at 1.70%, next year.
Despite the Canadian consumers squeezed by rising gasoline prices, Canada being a net exporter of oil, higher oil prices are adding substantially to its national income.
Major sectors that gained in today's trading were Energy (2.69%) and IT (0.02%).
Among the individual stocks, Goeasy Ltd (5.74%), Strathcona Resources Ltd (5.73%), Parex Resources Inc (5.33%), Cenovus Energy Inc (4.85%), Enerflex Ltd (3.92%), Blackberry Limited (4.84%), and Celestica Inc (4.45%) were the prominent gainers.
Major sectors that lost in today's trading were Materials (2.34%), Real Estate (1.88%), Industrials (1.63%), Utilities (1.28%), and Financials (1.12%).
Among the individual stocks, First Quantum Minerals Ltd (5.34%), Lundin Gold Inc (5.29%), Seabridge Gold Inc (5.16%), Orla Mining Ltd (5.09%), Abrasilver Resource Corp (4.93%), Firstservice Corporation (6.33%), and Colliers International Group Inc (5.90%) were the notable losers.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.