TSX Rises To 7-week High As Re-opening Of Strait Of Hormuz Lifts Sentiment

(RTTNews) - Canadian stocks moved higher on Friday, lifting the benchmark S&P/TSX Composite Index to its highest level since March 2, as investors reacted to news that Iran has declared the Strait of Hormuz completely open to commercial traffic on the heels of the 10-day ceasefire between Israel and Lebanon.

In a post on Truth Social, U.S. President Donald Trump said the Strait of Hormuz is "completely open and ready for business" but said the U.S. will continue its blockade of Iranian ports until a final peace agreement is reached.

Following the reopening of the Strait of Hormuz, oil prices plummeted with the WTI crude futures falling to $80.56 a barrel. At $82.82, the futures contract was down as much as 12.5% a little while ago.

The S&P/TSX Composite Index was up 368.94 points or 1.08% at 34,421.17 about half an hour past noon.

Oil's plunge took a heavy toll of energy stocks, pushing the Energy Capped index down by over 7%.

Materials, consumer discretionary, technology, financials and industrials stocks moved up sharply. Several stocks from healthcare, real estate and consumer staples sectors too posted strong gains.

Novagold Resources soared nearly 11%. Seabridge Gold, Magna International, BRP Inc., Fortuna Silver Mines, Equinox Gold, Pan American Silver Corp, Wheaton Precious Metals, Hudbay Minerals, Aritzia, Gildan Activewear and Torex Gold Resources gained 5%-8%.

Finning International, Real Matters, Kinross Gold, Martinrea International, Air Canada, Cargojet, TFI International, Boyd Services, Agnico Eagle Mines, Shopify, Celestica, Bombardier, EQB, BlackBerry and Linamar Corporation also moved up sharply.

Vermilion Energy, Canadian Natural Resources, Cenovus Energy, Kelt Exploration, Nutrien, Methanex, Suncor Energy, Precision Drilling, Whitecap Resources, Imperial Oil, Paramount Resources, Arc Resources and Tourmaline Oil Corporation lost 3%-10%.

In economic news, a report from the Canadian Federation of Independent Business showed Canada's CFIB Business Barometer long-term index, which tracks 12-month forward expectations for business performance, increased to 58.5 in April 2026, after falling sharply to a downwardly revised 55.7 in March. The short-term optimism index, based on the 3-month outlook, also posted a modest gain, rising by about 1 point to 55.4.

Housing starts in Canada fell by 6% to five-month low in March to a seasonally adjusted annual rate of 235,900, contrasting with market expectations that it would rise further to 255,000.