Canadian Stocks Edge Higher Amid U.S.-Iran Hormuz Strait Tensions

Canadian equities gained ground on April 13, 2026, as geopolitical tensions escalated between the United States and Iran over potential confrontation in the Strait of Hormuz, a critical chokepoint for global oil shipments. The risk-on sentiment in Canadian markets was partly supported by rising crude oil prices, which benefit Canada's energy-heavy benchmark index. The Strait of Hormuz handles roughly 20% of global oil transit, and any disruption threatens to tighten supply significantly, lending upward pressure to crude benchmarks. Canadian energy producers stand to benefit from elevated oil prices amid supply uncertainty. Broader market sentiment remained cautious, however, as investors weighed the potential for military escalation against an already fragile global trade environment. The Canadian dollar and commodity-linked equities tracked oil's advance, while defensive positioning persisted across other sectors. Analysts noted that prolonged tensions could amplify volatility in energy markets, with downstream effects on inflation and central bank policy outlooks across North America.