Partly offsetting yesterday's surge, Canadian stocks edged lower on Thursday amid reports indicating that while readying a response to U.S. peace proposal to end the war, Iran has prepared new rules for ships transiting the Strait of Hormuz to assert its control.
After opening a little higher than yesterday's close, today the benchmark S&P/TSX Composite Index lost the gains made earlier in the session to trade lower throughout the rest of the session before settling at 33,856.62, down by 125.20 points (or 0.37%).
Five of the 11 sectors posted gains today, with the IT sector leading the pack.
The war between U.S.-Israeli combined forces and Iran entered day number 69 today. The Strait of Hormuz remains effectively closed, blocking vessel traffic and keeping supply disruptions still active.
U.S. President Donald halted the "Project Freedom" initiative to guide the stranded vessels safely out of the Strait of Hormuz less than 36 hours after it began.
Yesterday, stating that the U.S. and Iran could possibly reach a deal soon, Trump claimed that the war will be over quickly.
Axios reported yesterday that the U.S. and Iran are closing in on a one-page Memorandum of Understanding featuring 14 key points with an aim to end the war immediately and arrive at a framework for extensive negotiations on all critical issues over a 30-day period.
U.S. officials expect Iran to respond over the next 48 hours while Iran is reviewing the plan.
Trump had cautioned that if Iran fails to reach a deal, the U.S. would restart bombing the nation at an increased intensity than before.
These developments lifted market sentiments and stock markets in the U.S. and Canada reacted positively.
Analysts are doubtful if hardliners in the Iranian regime would allow the government to concede to the U.S. demand on ending Iran's nuclear program.
Meanwhile, citing sources from Lloyds List, CNN reported today that Iran has laid out new rules for all ships transiting to move across the Strait of Hormuz.
The proposed plan, enlisted in a documented entitled "Vessel Information Declaration", is issued by Iran's recently created Persian Gulf Strait Authority. The PGSA document consists of more than 40 questions for shippers to answer.
Details on whether Iran would charge a fee from ships is unclear at this stage. Analysts are concerned that Iran plans to force all shippers to comply with it's protocols or face attacks.
These moves, seen as Iran's attempt to exert its control over the Hormuz, have renewed concerns of a re-escalation in the Middle East.
On the economic front, it was an uneventful day for Canada with no significant data releases.
With the Canada-United States-Mexico Agreement on free trade coming up for review, investors are awaiting a breakthrough from the ongoing negotiations between Canada and the U.S.
Meanwhile, Mexico launched a two-day major trade mission to Canada today involving more than 200 Mexican businesses aimed to expand bilateral commercial links with more than thousands of business meetings planned.
Major sectors that gained in today's trading were IT (1.83%), Real Estate (0.82%), Communication Services (0.67%), and Consumer Staples (0.51%).
Among the individual stocks, Kinaxis Inc (9.52%), Constellation Software Inc (6.89%), Shopify Inc (5.75%), Docebo Inc (4.80%), and Killam Apartment REIT (5.50%) were the prominent gainers.
Major sectors that lost in today's trading were Financials (0.44%), Materials (0.81%), Industrials (0.89%), and Energy (1.37%).
Among the individual stocks, Sprott Inc (6.32%), Sun Life Financial Inc (4.76%), Strathcona Resources Ltd (3.60%), Element Fleet Management Corp (6.68%), and Bird Construction Inc (4.42%) were the notable losers.
B2Gold Corp (11.00%) and Maple Leaf Foods (10.06%) 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.