TSX Rebounds as Iran Reopens Strait of Hormuz to Commercial Shipping

The S&P/TSX Composite index climbed 0.9% on Friday morning, recovering all losses sustained since the onset of the conflict in the Middle East. The rally was triggered by news that Iran has reopened the Strait of Hormuz to commercial shipping, signaling a potential de-escalation of regional tensions. The Strait of Hormuz serves as one of the world's most critical maritime chokepoints for energy exports. The announcement has eased investor fears regarding global supply chain disruptions and energy price spikes, shifting market sentiment from risk-aversion back toward growth. The rally was particularly strong in the materials and information technology sectors. Shopify Inc. emerged as the primary driver of the index's point gains, while mining firms such as Novagold Resources Inc. and Avino Silver and Gold Mines Ltd. recorded significant percentage increases. This recovery suggests that markets are pricing in a resolution to the geopolitical instability. The broad-based nature of the gains across the TSX indicates a return of risk appetite among institutional investors as the threat of a prolonged maritime blockade recedes.