Canada's TSX stock index futures are up slightly, with oil prices hovering above $100 per barrel

Investing.com - Tuesday, futures linked to major Canadian stock indexes rose as ongoing conflicts in the Middle East kept oil prices above $100 per barrel.

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As of 08:26 AM Eastern Time (20:26 Beijing Time), the S&P/TSX 60 Index standard futures contract increased by 5 points, up 0.3%.

Major stock indexes rose on Monday, gaining 1.03% to 32,876.65 points, marking the largest single-day gain since late February when the US and Israel launched joint attacks on Iran. The decline in oil prices the previous trading day helped boost risk appetite, especially driving a significant rally in metals and mining stocks, a key component of the commodity-heavy TSX index.

Investors are also closely watching the upcoming Federal Reserve and Bank of Canada interest rate decisions later this week, hoping to gain further insight into how policymakers will respond to potential inflation pressures from the Iran conflict.

US Futures Turn Higher

US stock index futures rose, reversing earlier declines after Wall Street saw a sharp rally the previous day.

As of 08:39 AM Eastern Time, Dow Jones futures increased by 162 points, up 0.3%, S&P 500 futures gained 17 points, up 0.2%, and Nasdaq 100 futures rose 35 points, up 0.1%.

Major Wall Street indexes advanced on Monday, buoyed by hopes that an international coalition might help reopen the Strait of Hormuz, a vital waterway in southern Iran through which about 20% of the world’s oil is transported.

While the UK and France expressed willingness to discuss options with Washington, several US allies including Germany and Japan rejected President Donald Trump’s call for assistance in reopening the strait.

Trump previously stated that the US does not need help restarting oil tanker traffic through the strait, but he said “many countries” have told him they are “coming” to help.

Brent Crude Remains Above $100

As of 08:50 AM Eastern Time, Brent crude futures rose 2.5% to $102.69 per barrel, while US WTI crude futures increased 3.0% to $95.25 per barrel. Since late February, when the US and Israel launched joint strikes on Iran, oil prices have surged over 40%.

Earlier Tuesday, The New York Times reported that a missile struck a tanker docked near a port in the UAE. Citing the UK Maritime Trade Operations Center, the paper said the vessel near Fujeirah port at the southern end of the strait was only lightly damaged.

UAE officials also reported that a drone caused a fire at a major oil industry facility, heightening concerns over global supply already under strain.

The prospect of a prolonged Iran conflict has raised fears of an energy shock that could push up global inflation, prompting some central banks to consider raising interest rates again. On Tuesday, the Reserve Bank of Australia raised rates to a 10-year high, citing “significant” inflation risks from the Iran conflict.

Other major central banks, including the Federal Reserve, European Central Bank, and Bank of Japan, are also scheduled to meet this week.

FXTM senior market analyst Lukman Otunuga told Investing.com: “Central banks face a complex balancing act. Conflict-driven inflation risks could force policymakers to reassess their outlook for 2026, especially as markets rapidly lower expectations for rate cuts. With key central bank decisions due this week, traders should prepare for increased volatility in stocks, commodities, and currencies.”

Trump Calls for Postponement of China Leader Meeting

Additionally, Trump has requested to delay his scheduled meeting next month with China’s top leader. Just days earlier, he threatened to postpone the meeting if China did not leverage its influence over Iran to help reopen the strait.

Last weekend, Trump called on China to send naval forces to protect the Strait of Hormuz, a key waterway in southern Iran through which about 20% of global oil supplies pass.

However, China, which buys oil from Iran, appears reluctant to respond to Trump’s request. Tehran allows Chinese oil tankers to pass through the strait but warned it would attack any ships carrying cargo that could benefit the US or its allies.

Meanwhile, The Wall Street Journal, citing sources, reported that Israeli officials said Iran’s security chief Ali Larijani was believed to have been killed in Monday’s airstrike.

The WSJ added that Iranian state media will soon release a statement from Larijani.

Other reports also suggest that Gholamreza Soleimani, commander of Iran’s Basij forces involved in suppressing protests earlier this year, has died. Iranian officials or state-backed media have not confirmed this.

DocuSign, Lululemon to Announce Earnings

Beyond the Iran situation, investors will also focus on earnings reports from digital contract signing platform DocuSign and athletic leisure retailer Lululemon after Wall Street closes.

Semiconductor giant Nvidia’s ongoing developer conference will also attract attention. On Monday, CEO Jensen Huang projected that by 2027, Nvidia’s AI chip sales could reach $1 trillion, up from this year’s target of $500 billion.

Huang also expressed optimism about AI inference, saying this computing enables models to respond quickly and efficiently to user questions, calling it “the future of AI.”

Dame Airlines’ stock also rose in pre-market trading after the airline announced it expects earnings per share within its previous guidance range, citing strong revenue offsetting higher fuel costs.

Gold Rises

Gold prices broke key levels during Asian trading, with market focus on oil prices, the US-Israel-Iran conflict, and upcoming central bank meetings this week.

Gold briefly dipped below $5,000 per ounce in the previous session. Increased safe-haven demand was largely offset by concerns over war-induced inflation. A stronger dollar also diminished gold’s appeal.

However, gold has been fluctuating within the $5,000–$5,200 per ounce range over the past three weeks.

Attention now shifts to the series of major central bank rate decisions this week, especially Wednesday’s Federal Reserve meeting. Amid high uncertainty about inflation impacts from the Iran conflict, the Fed is widely expected to hold rates steady.

The Bank of Canada will also meet on Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England, and European Central Bank will decide on rates on Thursday.