Markets juggle 2.5% crude jump, Iran war risk, and softer TSX close
Oil is surging, tankers are stuck at a “effectively closed” Strait of Hormuz, and US stocks are still setting records – a sharp mix of war‑driven supply risk and resilient earnings that markets can’t ignore.
According to BNN Bloomberg, oil prices climbed more than 2.5 percent as crude stayed bottled up in the Middle East, including Iranian barrels blockaded by the US Navy.
Iran has offered to reopen the strait if the United States ends its blockade, while proposing to push broader talks on its nuclear program into a later phase.
The outlet said US President Donald Trump seems unlikely to accept the proposal, which Pakistan passed on as part of its mediating role.
CNBC reported that Trump cancelled plans to send US special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, saying discussions could happen by phone instead.
On Truth Social, he complained that there was “too much time wasted on traveling” and “too much work,” saying nobody knew who was in charge.
He claimed “we have all the cards; they have none” and added that if they wanted to talk, “all they have to do is call.”
According to CNBC, Iran’s Foreign Ministry spokesperson Esmaeil Baqaei said no meeting between Tehran and Washington is currently planned.
As per BNN Bloomberg, Trump told US envoys not to go to Pakistan and signalled he is content to keep squeezing Iran with the blockade by saying the Iranians could call Washington with any proposal.
Reuters reported that Trump said Iran could contact the United States to negotiate an end to the two-month war, while insisting Tehran must never obtain a nuclear weapon.
Iran said the US would have to remove barriers to any deal, including the blockade of Iranian ports.
The article also said Foreign Minister Abbas Araqchi is in Russia to seek support from Russian President Vladimir Putin.
Oil markets responded decisively.
CNBC reported that West Texas Intermediate futures rose 2.09 percent to settle at US$96.37 per barrel, while Brent gained 2.75 percent to close at US$108.23.
BNN Bloomberg said the June crude contract was up US$1.97 at US$96.37, with June Brent climbing 2.8 percent to US$108.23 and July Brent – where more trading is taking place – rising 2.6 percent to US$101.69 per barrel.
Brent was about US$70 per barrel before the war and has briefly shot to nearly US$120 when fears about the conflict have peaked.
Despite the energy shock, US equities kept edging higher.
CNBC said the S&P 500 added 0.12 percent to a record 7,173.91, the Nasdaq Composite rose 0.20 percent to a record 24,887.10, and the Dow Jones Industrial Average slipped 62.92 points, or 0.13 percent, to 49,167.79.
BNN Bloomberg described the S&P 500’s 0.1 percent gain as a downshift after weeks of strong advances driven by better‑than‑expected corporate profits and hopes the economy can avoid a worst-case war scenario.
The 10‑year US Treasury yield ticked up to 4.33 percent from 4.31 percent late Friday.
In Canada, the same article said the S&P/TSX composite index fell 85.92 points to 33,818.19.
With earnings season set to ramp up, Jillian Bryan, senior investment adviser and senior portfolio manager at TD Wealth, called it a “pretty quiet day.”
She said 180 S&P 500 names will report this week, including Amazon, Google, Meta and Microsoft after Wednesday’s close, and Apple on Thursday.
BNN Bloomberg reported that the Canadian dollar strengthened to 73.45 cents US from 73.11 cents US, while the June gold contract fell US$47.20 to US$4,693.70 an ounce.
The same article said most big US companies have been reporting profit growth for early 2026 that is stronger than analysts expected, helping the S&P 500 jump 13 percent since a late‑March low.
Verizon Communications rose 1.5 percent after it topped expectations, added more postpaid phone customers than it lost in a first quarter for the first time since 2013, and raised its profit‑growth forecast despite softer revenue.
Domino’s Pizza fell 8.8 percent after weaker‑than‑expected profit and revenue.
Policy risk is next in line.
BNN Bloomberg reported that the US Federal Reserve will announce its latest decision on short‑term interest rates on Wednesday, with traders largely expecting it to hold the federal funds rate steady.
The article said lower rates would support the economy but could worsen inflation as oil prices rise and tariffs threaten to push up prices for many products.
This will likely be the last meeting chaired by Jerome Powell, whose term ends next month, with Trump having named Kevin Warsh as his replacement.
The European Central Bank, Bank of Japan and Bank of England will also announce interest‑rate decisions this week.
