Geopolitical Tensions Surge as Iran Closes Strait of Hormuz, Pressuring Canadian Equities

Canadian markets shifted into negative territory on Thursday as geopolitical instability in the Middle East intensified. The S&P/TSX Composite Index fell 89.11 points, or 0.27%, to trade at 33,531.46, as investors reacted to the closure of the Strait of Hormuz by Iranian forces. The blockade follows accusations from Tehran that the United States violated several clauses of a 10-point proposal. Iranian Foreign Minister Araghchi stated that the U.S. must choose between a ceasefire or continued conflict via Israel, while President Donald Trump maintained that U.S. military forces would remain deployed until Tehran complies with the 'real agreement.' The volatility created a mixed performance across sectors. While technology, communications, and consumer staples faced selling pressure—with Open Text dropping 5.6% and Shopify falling nearly 5%—the energy and financial sectors saw notable gains as investors hedged against potential oil supply disruptions. Amid the macro turmoil, BlackBerry shares surged over 11%. The company reported quarterly revenue of $156 million, beating the $144.4 million consensus estimate. BlackBerry also raised its first-quarter fiscal 2027 revenue guidance to between $132 million and $140 million, surpassing previous analyst expectations of $129.9 million. The closure of one of the world's most critical oil transit points introduces significant systemic risk to global energy markets, likely sustaining volatility in commodity-heavy indices like the TSX as the world monitors the U.S. response.