Canadian Stocks Poised For Weak Open As Oil Surges On Iran Tensions

(RTTNews) - Bay Street looks headed for a weak start on Thursday amid rising concerns about an escalation in Middle East tensions, and the resultant sharp surge in oil prices.

Oil prices rose sharply amid rising concerns over an escalation in U.S.-Iran conflict. According to reports, the White House asked Pentagon to develop options to strike Iran before the midterm elections, but no final decision has been made. Meanwhile, oil companies operating in the Gulf of Mexico have begun curbing production and evacuating personnel from offshore facilities.

West Texas Intermediate Crude oil futures are up $4.28 or about 4.8% at $92.52 a barrel.

Gold futures are up $6.30 or 0.15% at $4,147.00 an ounce, while Silver futures are down $1.239 or 2.05% at $59.055 an ounce.

Hydro One Limited said its unit Hydro One Networks Inc. has submitted its 2028-2032 joint rate application to the Ontario Energy Board, proposing an approximately C$37 billion five-year investment plan. The plan would add transmission capacity to connect and deliver about 6,000 megawatts of new electricity, modernize about 1,400 kilometers of transmission lines and replace or refurbish more than 85,000 distribution poles.

Canadian stocks fell sharply in early trading on Wednesday and stayed weak right through the session. The benchmark S&P/TSX Composite Index ended down 607.65 points or 1.7% at 35,041.86, the lowest closing level in more than two months.

Asian stocks ended mostly lower on Thursday as technology stocks retreated on concerns over a surge in AI-related corporate debt. Concerns over rising bond yields and the outlook for monetary policy also weighed on markets as oil prices remained elevated in the wake of supply disruptions linked to the Iran conflict and attacks by Yemen's Iran-backed Houthis on Saudi Arabia.

The major European markets are down in negative territory today, weighed down by concerns about inflation and interest rates as oil prices rose sharply amid rising tensions in the Middle East.