Oil Surge to US$98 Sends S&P/TSX Tumbling Nearly 300 Points
Key Takeaways
- S&P/TSX composite fell nearly 300 points in late-morning trading
- April crude oil contract rose US$7.65 to US$98
- U.S. stocks also fell
TSX falls on oil surge
Canada’s main stock index, the S&P/TSX, plunged about 296 points to 32,787.33 in late-morning trading as oil prices surged on Middle East supply concerns, driving a sharp market downturn in Canada’s equities.
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The jump in crude was a primary trigger for the pullback, amplifying investor anxiety about growth and energy sector exposures.
Oil price surge causes
The immediate cause cited for the oil surge was a reported Iranian attack that damaged Bahrain's refinery and prompted a force majeure declaration, along with overnight strikes in Tehran, events that raised fears of reduced regional output and tighter global supplies.
Those supply-side shocks pushed futures sharply higher and fed through to equity markets sensitive to energy price volatility.
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North American market moves
U.S. markets moved lower alongside Canadian equities: the Dow fell about 351 points to 47,150.13, the S&P 500 lost 31.49 points to 6,708.53, and the Nasdaq dropped 43.66 points to 22,344.02, reflecting a broad risk-off tone across North American markets as energy-related uncertainty spread.
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Currency and commodity markets also showed immediate reactions.
FX and commodities reaction
On the FX and commodities side, the Canadian dollar eased to about 73.59 US cents (from 73.46 on Friday).
Gold futures were reported down — the April gold contract fell US$63 to US$5,095.70 an ounce — signalling flows into or out of safe havens and commodity re-pricing amid the shock.
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Note: only the Powell River Peak item (citing The Canadian Press/AP) was provided for this summary, so additional perspectives (e.g., regional Gulf coverage, direct market commentary, central bank reaction) are not available here.