Canadian Stocks Slide as U.S. Launches New Strikes on Iran Despite Peace Talks

Canadian equities fell sharply on May 26, 2026, as the United States launched fresh attacks on Iranian military sites, derailing ongoing diplomatic negotiations and spooking global markets. The S&P/TSX Composite Index dropped 1.8% to close at 21,950.32, its steepest one-day loss in three weeks. The strikes targeted drone facilities near Tehran while multilateral peace talks were underway in Geneva. Brent crude surged 4.2% to $78.50 a barrel on supply disruption fears, lifting energy shares but failing to offset broad declines. All 11 major TSX sectors ended lower, with technology and financials leading the rout. The Canadian dollar weakened 0.6% against the greenback, as investors sought safety amid heightened Middle East tensions.