Bay Street Seen Opening On Weak Note

(RTTNews) - Canadian shares look headed for a weak start Monday morning amid an escalation in Middle East conflict. Sharply lower Canadian and U.S. futures also point to a negative start.

Oil prices skyrocketed with the front-month WTI contracts rising to $119.48 a barrel earlier in the day, following production cuts by major Middle Eastern producers—including Kuwait, Iran, and the United Arab Emirates—after the closure of the Strait of Hormuz.

Despite dropping to around $101.00, the contract remains high up with a near 11% gain.

According to reports, the UAE activated its advanced air defence systems to intercept incoming projectiles fired by Iranian forces.

Canadian stocks slumped on Friday as a surge in oil prices due to the ongoing Middle East conflict raised inflation concerns, prompting investors to hold back from risky moves.

The benchmark S&P/TSX Composite Index traded firmly negative throughout the session before settling at 33,083.72, down by 526.25 points or 1.57%.

Asian stocks tanked on Monday as oil surged above $100 a barrel for the first time since 2022 amid escalating political tensions in West Asia.

Tensions in the Gulf escalated following reports of explosions at Al Udeid Air Base, the largest United States military installation in the Middle East.

Bahrain's state oil company has declared force majeure on its shipments after Iranian strikes in the region set the largest oil facility on fire.

The major European markets are down sharply in negative territory today, with deepening Middle East crises and rising oil prices weighing on sentiment.

West Texas Intermediate crude oil futures are up $10.01 or 11% at $100.91 a barrel.

Gold futures are down $47.10 or 0.91% at $5,111.60 an ounce, while Silver futures are lower by $0.506 or 0.65% at $83.805 an ounce.