TSX Hits 7-Week High as Strait of Hormuz Reopens, Sending Oil Prices Tumbling

The S&P/TSX Composite Index surged to its highest level since early March, gaining 368.94 points, or 1.08%, to reach 34,421.17. The rally was sparked by the announcement that the Strait of Hormuz is once again open for commercial shipping, significantly easing fears of a prolonged global energy supply disruption. The reopening follows a 10-day ceasefire between Israel and Lebanon. U.S. President Donald Trump confirmed the waterway is "ready for business," although he noted that the United States will maintain its blockade of Iranian ports until a comprehensive peace agreement is finalized. The geopolitical thaw led to a collapse in oil prices, with WTI crude futures dropping to $80.56 per barrel after falling as much as 12.5% during the session. This plunge severely impacted the energy sector, dragging the Energy Capped index down by more than 7%. Major producers including Suncor Energy, Canadian Natural Resources, and Imperial Oil saw losses ranging from 3% to 10%. Conversely, non-energy sectors flourished as risk appetite returned. Materials, technology, and financials saw sharp gains, with Novagold Resources jumping nearly 11%. Other notable gainers included Shopify, Air Canada, and several precious metals miners such as Equinox Gold and Pan American Silver Corp. In domestic economic data, the CFIB Business Barometer's long-term index improved to 58.5 in April from a revised 55.7 in March. However, Canadian housing starts disappointed, falling 6% to a seasonally adjusted annual rate of 235,900, missing market expectations of 255,000.