U.S. Blockade of Strait of Hormuz Sparks Global Market Turmoil After Iran Peace Talks Collapse

The failure of peace talks between the United States and Iran over the weekend has escalated into a direct military confrontation. President Donald Trump has ordered a total blockade of all maritime traffic entering and exiting Iranian ports, including the strategically vital Strait of Hormuz, heightening fears of a prolonged conflict and severe disruptions to Persian Gulf energy supplies. The diplomatic collapse in Islamabad has erased hopes for a swift resolution to the six-week conflict. While U.S. Vice President JD Vance suggested that terms could still be reached, the immediate military action signals a shift toward a high-stakes strategy. Iran's navy chief has responded by asserting that the country is prepared to counter any military action and will not be intimidated. The energy market reacted sharply to the threat of supply disruptions, with West Texas Intermediate (WTI) crude oil futures jumping 7.84% to $104.14 per barrel. Conversely, precious metals saw a decline, with gold futures falling 1.1% to $4,734.70 and silver dropping 2.88% to $74.28. Equity markets are facing significant downward pressure. Following losses in Asia and Europe, Canadian stocks are expected to open lower on Monday. The S&P/TSX Composite Index, which had closed Friday at 33,695.76, is now vulnerable to the renewed geopolitical instability. Amid the turmoil, Canadian corporate activity continues. GFL Environmental has entered a definitive agreement to acquire SECURE Waste Infrastructure for C$24.75 per share, representing an enterprise value of approximately C$6.4 billion. Additionally, Canada reported a monthly decrease of 8.4% in building permits for February, down from a 3.5% increase in January.