Canadian stocks moved lower on Monday as investors refrained from big bets after the U.S. and Iran pushed to re-assert control over the Strait of Hormuz. The intensifying conflict pushed oil prices and inflationary concerns higher once again.
After opening a little lower than previous week's close, today the benchmark S&P/TSX Composite Index gave away early gains and traded lower before settling at 33,638.87, down by 252.31 points (or 0.74%).
Two of the 11 sectors posted gains today, with the energy sector leading the pack.
Investors held back from risky moves after U.S. President Donald Trump announced an initiative to guide the stranded vessels out of the Strait of Hormuz safely as it drew Iran's strong opposition.
On Sunday, Trump posted via Truth Social that countries that are not involved in the gulf crisis have asked for U.S. help to free up their stranded ships from the Strait of Hormuz.
Trump stated that the U.S. navy would guide these vessels safely out of the conflict zone and added that they would not return until the waterway returns to normalcy.
Terming this operation as "Project Freedom" conducted on a humanitarian basis, Trump warned that any "interference" will be dealt with forcefully hinting of military attacks.
Displeased by the U.S. announcement, Iran stated that it will attack any foreign military vessels attempting to enter the crucial waterway and ordered that all vessel transits must be coordinated with the Iranian military.
Asserting Iran's control over the crucial chokepoint, Major General Ali Abdollahi of the Iranian armed forces stated that any foreign armed force attempting to enter the strait will be attacked.
Trump refrained from naming the countries that sought the U.S. help and did not elaborate on how the actual mechanism of "guidance" will work.
As the U.S and Iran issued mutual threats, ship owners are taking measured steps before making the next move.
More than 850 ships are estimated to be trapped in the conflict zone since the U.S.-Israel versus Iran war began on February 28.
On the diplomatic front, Trump observed that discussions between the U.S. and Iranian negotiators are going on smoothly and asserted that a positive outcome would emerge soon.
Over the weekend, Trump reacted negatively to Iran's latest 14-point peace proposal, according to Israeli state-run Kan News.
U.S. Central Command stated that it would support the operation with nearly 100 land- and sea-based aircraft, drones, and 15,000 troops.
Today, the Joint Maritime Information Center of the U.S.-led military stated that the U.S. had established an "enhanced security area" south of the pre-war routes through the strait and warned of the presence of sea mines in the usual shipping lanes.
Meanwhile, Trump announced that Iran attacked a South Korean cargo ship while the U.S. eliminated seven Iran's boats entering the strait.
The Defense Ministry of the United Arab of Emirates stated that it intercepted ballistic missiles, cruise missiles, and drones from Iran across the country.
These strikes have triggered concerns of the ongoing U.S.-Iran ceasefire snapping at any time.
Against the backdrop of renewed tensions in the Middle East, and the ongoing uncertain geopolitical climate, investors in Canada refrained from risky moves.
Major sectors that gained in today's trading were Energy (1.37%) and IT (0.59%).
Among the individual stocks, Kelt Exploration Ltd (2.61%), Vermilion Energy Inc (2.45%), Cenovus Energy Inc (2.44%), Baytex Energy Corp (2.36%), and Blackberry Limited (3.53%) were the prominent gainers.
Major sectors that lost in today's trading were Consumer Staples (1.33%), Industrials (1.34%), Materials (1.59%), and Consumer Discretionary (2.05%).
Among the individual stocks, Premium Brands Holdings Corporation (2.20%), Jamieson Wellness Inc (2.18%), Maple Leaf Foods (2.17%), Alimentation Couche-Tard Inc (1.78%), and Gildan Activewear Inc (5.51%) were the notable losers.
Bird Construction Inc (5.62%) and Aecon Group Inc (5.24%) were among the prime market-moving stocks today.
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Market Analysis
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.