TSX falls as Middle East tensions fuel inflation fears
The S&P/TSX composite index dropped 0.7 percent as rising oil prices and geopolitical conflict sparked concerns over potential Bank of Canada interest rate hikes.
The S&P/TSX composite index in Canada fell 0.7% to 33,638.87 on Monday as escalating conflict in the Middle East fueled inflation fears. The benchmark lost 252.31 points, erasing gains as investors braced for potential interest rate hikes later this year. For investors, the shift from a rate pause to a tightening cycle threatens the valuation of rate-sensitive Canadian equities.
### Oil Spikes as Gulf Conflict Escalates West Texas Oil settled 4.4% higher at $106.42 a barrel following a 24-hour surge in attacks. Iran stepped up strikes on the United Arab Emirates and shipping vessels in the Gulf, marking the most severe escalation since the ceasefire established last month.
