2026.05.2520:31:58UTC+00TSX Hits Record High on US-Iran Talks

The S&P/TSX Composite Index climbed 1% on Monday to close at a record high of 34,831, buoyed by signs of progress in talks between the United States and Iran aimed at resolving their conflict. According to reports, Iran is prepared to reopen the Strait of Hormuz within a 30-day window following a potential agreement. In addition, the ceasefire brokered in early April would be extended by 60 days, with negotiations on Iran’s nuclear program scheduled to take place during this two‑month pause.

Oil prices declined on hopes of easing geopolitical tensions, alleviating inflation concerns and pushing bond yields lower, which in turn supported financial stocks. Canadian banks are in focus this week, with earnings from Royal Bank of Canada (+0.8%), Toronto‑Dominion Bank (+1.2%), and Bank of Montreal (+0.9%) due in the coming days.

Mining shares also outperformed as gold prices advanced. Agnico Eagle gained 4.6%, Barrick Gold rose 4.2%, and Wheaton Precious Metals (WPM) added 5.6%. By contrast, energy stocks were the primary drag on the index, falling in step with the retreat in crude. Canadian Natural Resources slipped 3.6%, while Suncor Energy declined 3%.

On the trade front, the first round of formal negotiations on the US‑Mexico‑Canada free trade agreement has commenced.