Canada TSX Stock Index Futures Decline Slightly, Iran Conflict Escalation and Oil Price Surge in Focus

Investing.com - On Thursday, futures linked to major Canadian stock exchanges hovered around flat, as market sentiment remained subdued amid escalating tensions in Iran.

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As of 08:01 AM Eastern Time (21:01 Beijing Time), the S&P/TSX 60 index standard futures contract fell by 1 point, a 0.1% decrease.

On Wednesday, the S&P/TSX Composite Index declined 0.5% to 33,119.83, ending two consecutive days of slight gains.

A strengthening dollar pressured gold prices, reducing the appeal of metal mining stocks, which are a significant part of the resource-heavy TSX index. The materials sector, including these companies, fell by 1%.

Energy stocks rose 2.6%, reflecting recent oil price increases.

U.S. stock index futures decline

U.S. stock index futures edged lower, after oil prices briefly surged above $100 per barrel. Despite global efforts to release record amounts of strategic crude oil reserves, investor concerns over Iran-related disruptions to tanker shipping persisted.

As of 08:16 AM Eastern Time, Dow futures dropped 376 points, down 0.8%, S&P 500 futures fell 41 points, down 0.6%, and Nasdaq 100 futures declined 144 points, down 0.6%.

Market sentiment was weighed down by the fact that shipping through the Strait of Hormuz has effectively stopped, a critical chokepoint surrounded on three sides by Iran. Container companies have nearly halted navigation through this narrow waterway to protect crew safety and seek insurance, even though it carries one-fifth of the world’s oil and liquefied natural gas supplies.

Ships in and around the strait have been attacked, heightening fears of a supply crunch. On Wednesday, maritime authorities monitoring shipping activity reported that a third vessel was attacked by an unidentified flying object, after two others were hit and set on fire near the Iraqi coast. Iraq and Oman subsequently closed their oil terminals.

The International Energy Agency warned that Middle East conflicts are causing the largest-ever disruption of global oil supplies. The IEA announced the largest strategic oil reserve release in history and sharply downgraded its annual supply outlook.

Continued U.S.-Israel joint strikes on Iran over the past week have caused significant volatility in oil prices and rekindled inflation concerns worldwide. Markets are betting that central banks like the Federal Reserve will reconsider rate cuts, pushing bond yields higher and further weakening equities.

Brent crude rose 6.8% to $98.22 per barrel, briefly surpassing $100 earlier in Asian trading. Earlier this week, the global benchmark oil price surged close to $120 per barrel. U.S. WTI crude increased 6.6% to $93.00 per barrel.

On Wednesday, blue-chip Dow Jones Industrial Average closed at its lowest level this year, reflecting fears that oil shocks could hurt many U.S. companies and consumers.

However, the benchmark S&P 500 index edged lower only slightly, while the tech-heavy Nasdaq Composite rose modestly. Cloud computing giant Oracle’s better-than-expected earnings boosted market sentiment, with the company optimistic about demand for AI data centers. U.S. February consumer price data also met expectations, though inflation outlooks have darkened amid preparations for rising oil prices.

Adobe earnings upcoming

In addition to Iran tensions, traders are watching for Adobe’s upcoming earnings report to see how the Photoshop maker is responding to recent concerns about AI’s impact on the software sector.

AI was once seen as a tailwind for the industry, but recent AI tool launches have sparked fears of disruption, potentially impacting many SaaS companies. Investors are especially worried about new forms of AI, such as Anthropic’s Claude proxy plugins that can browse legal documents, which could significantly affect demand across data analysis, marketing, and other areas.

The S&P 500 Information Technology sector, which includes Adobe, has fallen over 3% so far this year, contrasting sharply with a 24% total return in 2025.

Adobe’s stock reflects this trend, with its product suite—including InDesign and Acrobat—down more than 17% year-to-date.

Even before the current survival crisis in the software industry, Adobe has been seeking to counter potential disruptions by pushing its AI strategy, integrating emerging technologies through tools like Firefly and Adobe Express. These enhancements aim to attract users by enabling quick creation of images and videos within Adobe’s Creative Cloud.

Efforts to monetize AI development seem to position the company favorably, with executives forecasting full-year revenue and profit exceeding Wall Street expectations. The company expects annual revenue between $25.9 billion and $26.1 billion, with EPS between $23.30 and $23.50.

Additionally, Dollar General’s stock fell after its annual comparable sales forecast failed to meet Wall Street estimates.

Gold remains subdued

Gold prices edged lower as tensions between the U.S., Israel, and Iran showed little sign of easing, prompting funds to flow into energy prices amid inflation worries.

Spot gold declined 0.1% to $5,169.94 per ounce, while gold futures remained nearly unchanged at $5,177.11 per ounce.

Despite ongoing fluctuations within the $5,000–$5,200 range, pressured by oil shocks, some analysts worry this could reignite price gains. As a result, central banks like the Federal Reserve may be forced to reconsider recent rate cuts, strengthening the dollar.

A stronger dollar could weigh on gold, making it more expensive for overseas buyers and diminishing its traditional safe-haven appeal. The dollar index rose about 0.2%, approaching a two-month high.

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