TSX Surges as U.S.-Iran Ceasefire Triggers Oil Price Collapse

The S&P/TSX Composite Index climbed significantly on Wednesday as geopolitical tensions eased following an announcement of a temporary ceasefire between the United States and Iran. The index rose 461.53 points, or 1.39%, to reach 33,699.05, after hitting an intraday peak of 33,862.47. The rally was sparked by an announcement from U.S. President Donald Trump, who stated that the U.S. would suspend attacks on Iran for two weeks. This suspension is conditional upon Tehran ensuring the immediate and safe opening of the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi confirmed the reopening of the strait provided attacks cease, noting a 10-point proposal serves as a workable basis for negotiations. The ceasefire triggered a sharp sell-off in energy markets, easing global concerns regarding inflation and economic growth. West Texas Intermediate (WTI) crude futures plunged 16%, while Brent Crude dropped nearly 14% from Tuesday's close, bottoming near $90 per barrel before recovering slightly to $94.50. While energy stocks tumbled—with International Petroleum Corporation falling nearly 9% and others such as Suncor and Canadian Natural Resources dropping between 3% and 8%—the broader market benefited. Consumer discretionary, materials, and technology indices rose by 3.2%, 3%, and 2.9%, respectively. Notable individual gainers included Hut 8 Corp, which soared nearly 15%, alongside significant gains for Shopify and several mining firms.