Geopolitical Tensions in Strait of Hormuz Weigh on Canadian Market Outlook

The Canadian equity market is bracing for a weak start on Thursday, driven by escalating geopolitical instability in the Middle East. Investors are reacting to reports that Iran has seized two cargo ships attempting to exit the Strait of Hormuz, a critical artery for global oil shipments, while demanding that Washington lift its naval blockade. This escalation follows a brief period of optimism after U.S. President Donald Trump extended a ceasefire in the U.S.-Iran conflict. However, the current blockade and the seizure of vessels have reignited fears of a broader supply disruption, weighing heavily on global sentiment and capping previous gains. The impact is already visible across international markets, with Asian and European indices trading lower. In the commodities space, West Texas Intermediate (WTI) crude futures have edged up to $93.10 per barrel. Conversely, precious metals saw a decline, with gold futures falling 0.37% to $4,735.10 and silver dropping 3.13% to $75.510. Locally, the S&P/TSX Composite Index previously closed at 33,955.11, marking a 0.43% gain. Market participants are now awaiting key economic data, including Canadian manufacturing sales, raw materials sales, and producer prices for March, all due at 8:30 AM ET. In corporate developments, Teck Resources reported a strong first-quarter earnings per share of $1.75, a significant increase from the $0.60 reported in the previous quarter. Other firms, including Fairfax Financial, Advantage Oil & Gas, and Mullen, are also scheduled to release their quarterly results today.