(RTTNews) - Canadian stocks moved lower on Wednesday, extending the losses from two previous sessions amid the ongoing Strait of Hormuz closure while traders analyzed the interest rate decisions by the central banks of Canada and the U.S. After opening below yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly negative before settling at 33,318.39, down by 265.95 points (or 0.79%). Only two of the 11 sectors posted gains today, with the energy sector leading the pack and the IT sector recording an incremental addition. The ongoing war between the U.S. and Iran has left the Strait of Hormuz blocked since the war began on February 28, pushing oil prices higher to levels not seen in four years. First, Iran closed the strait immediately after the war began and later U.S. President Donald Trump ordered a naval blockade on all ships heading to and from Iran's ports. Despite a ceasefire holding, measures to resolve the crisis through diplomatic channels have not yielded enough. After Trump cancelled the second round of peace talks last weekend, Iran rushed up with a peace plan. However, Trump declined the proposal, which wanted the discussions on Iran's nuclear programs to be held at a later date. Yesterday, at the conclusion of a special meeting convened to discuss the Middle East crisis, the Gulf Cooperation Council warned Iran against its attacks on neighboring nations and urged it to take serious efforts to regain trust. The GCC also called the blocking of the Strait of Hormuz "illegal." Pressured by the U.S. as well as its neighbors, Iran is preparing a revised proposal to submit to the U.S. through intermediaries. In an exclusive report, Axios stated that during a crucial meeting with top executives from the oil and gas industry at the White House today, Trump hinted at the possibility of a lengthy blockade on oil transit across the Strait of Hormuz. The discussion centered around the measures needed to minimize the impact on the U.S. consumers. Currently, average gasoline price is hovering at $4.23 per gallon in the U.S. In the U.S., the Federal Reserve kept its benchmark interest rates unchanged (in the 3.50% to 3.75% range) owing to rising inflation. In Canada, holding a hawkish stance, the Bank of Canada held its target for the overnight rate at 2.25%, with the bank rate at 2.50% and the deposit rate at 2.20%. Amid unclear geopolitical conditions, the BoC refrained from offering a precise clue on future interest rates. The Canadian economy is facing challenges due to increasing oil prices following the gulf war and the uncertainty surrounding the U.S. trade policies with other nations. The central bank's quarterly forecast anticipates inflation to peak in April at around 3.00% and assumes a fall in crude oil prices to $75 per barrel by the middle of next year. The revised forecasts by the BoC predicts a GDP growth rate at 1.20% this year and at 1.70%, next year. Despite the Canadian consumers squeezed by rising gasoline prices, Canada being a net exporter of oil, higher oil prices are adding substantially to its national income. Major sectors that gained in today's trading were Energy (2.69%) and IT (0.02%). Among the individual stocks, Goeasy Ltd (5.74%), Strathcona Resources Ltd (5.73%), Parex Resources Inc (5.33%), Cenovus Energy Inc (4.85%), Enerflex Ltd (3.92%), Blackberry Limited (4.84%), and Celestica Inc (4.45%) were the prominent gainers. Major sectors that lost in today's trading were Materials (2.34%), Real Estate (1.88%), Industrials (1.63%), Utilities (1.28%), and Financials (1.12%). Among the individual stocks, First Quantum Minerals Ltd (5.34%), Lundin Gold Inc (5.29%), Seabridge Gold Inc (5.16%), Orla Mining Ltd (5.09%), Abrasilver Resource Corp (4.93%), Firstservice Corporation (6.33%), and Colliers International Group Inc (5.90%) were the notable losers. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - Canadian stocks moved lower on Wednesday, extending the losses from two previous sessions amid the ongoing Strait of Hormuz closure while traders analyzed the interest rate decisions by the central banks of Canada and the U.S. After opening below yesterday's close, to…
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.