Canadian stocks moved higher on Monday even as a U.S. blockade on Iranian ports triggered concerns of a protracted war in the gulf, forcing investors to hold back from risky moves while energy-driven inflationary pressures deflated expectations of a low-interest-rate regime.
After opening below the previous week's close, today the benchmark S&P/TSX Composite Index gained ground gradually to trade positive later in the session before settling at 33,879.24, up by 183.48 points (or 0.54%).
After last Wednesday's two-week ceasefire announcement by U.S. President Donald Trump on all attacks on Iran, Iran permitted only around 15 ships per day to pass through the Strait of Hormuz.
Ship owners were reluctant to allow their fleet to navigate the strait due to concerns of Iran-planted sea mines.
On Saturday, a team of senior U.S. diplomats headed by U.S. Vice President JD Vance arrived in Islamabad, Pakistan, to meet with their Iranian counterparts on key issues causing hostilities between the two nations.
Trump later announced that after over 20 hours of consultations, Iran refused to wind back its nuclear ambitions, a key demand made by the U.S.
Iran's Foreign Minister Abbas Araghchi claimed that while Iran negotiated in good faith, the "U.S. maximalism" led to the collapse of the talks.
Later, Trump stated that U.S. forces stationed near Iran will block Iran's ports by halting all ship movements from and to Iran across the Strait of Hormuz from 10:00 am ET.
Trump stated that the "ceasefire holds well" but expressed disinterest on what Iran plans to do next on the diplomatic front.
Trump warned through his social media platform Truth Social that if any of Iran's navy ships approached the "blockade region," they will be eliminated, quickly and brutally.
A few hours before, the crucial blockade started, with U.S. Central Command clarifying that it will allow only those ships that travel between non-Iranian ports but block impartially all vessels entering or departing Iran's ports.
Iran's armed forces slammed the U.S. move as "piracy" and warned that any military vessel closing in near Hormuz would receive a "firm response."
Israel being a key partner of the U.S. in Operation Epic Fury, its Prime Minister Benjamin Netanyahu supported the blockade.
The U.S. military is set to launch operations to clear the sea mines implanted by Iran.
Amid this deepening escalation and increasing war-threat, oil prices bounced from the previous week's plunge.
Traders are holding back from risky moves to see how the crisis unfolds.
On the domestic front, Prime Minister Mark Carney's Liberal Party is predicted to gain a slim majority in the House of Commons in the three by-elections held today.
Carney's party is holding 171 out of 343 seats in the House, statistically in need of just one seat for a majority.
Aside from Statistics Canada's data on building permits indicating a fall of 8.40% month-over-month to C$12.1 billion in February, it was an uneventful day for Canada on the economic front.
Last Friday's data on employment revealed that the economy modestly added jobs in March, edging up 14,000 (or 0.10%) reversing a two-month losing trend.
Major sectors that gained in today's trading were IT (4.46%), Financials (1.23%), Communication Services (1.00%), and Real Estate (%).
Among the individual stocks, Tecsys Inc (6.39%), Constellation Software Inc (6.37%), Brookfield Corporation (3.27%), and Power Corporation of Canada (3.05%) were the prominent gainers.
Major sectors that lost in today's trading were Industrials (0.19%), Materials (0.19%), Utilities (1.27%), and Consumer Staples (2.35%).
Among the individual stocks, Gfl Environmental Inc (10.02%), Transcontinental Inc (3.62%), Atco Ltd (2.63%), and Canadian Utilities Ltd (2.62%) were the notable losers.
Lithium Americas Corp (7.28%), Constellation Software Inc (6.37%), and G Mining Ventures Corp (5.80%) were among the prime market-moving stocks today.
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Market Analysis
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.