-- The Toronto Stock Exchange is down near 200 points at midday with all sectors in the red.
Miners and energy are the worst performers, down 1.8% and 1.3%, respectively.
Oil prices were higher early Monday in volatile trade after Iran claimed it struck a U.S. warship moving into the Strait of Hormuz with two missiles, a claim denied by U.S. Central Command, according to reports. If such a hit did happen, it would potentially bring an end to a ceasefire between the two countries.
Gold traded lower early Monday as the dollar and yields rose, but the precious metal remains within the tight range it has stuck within for the past month.
In other news, CIBC notes that since the conflict in Iran began on February 28, fertilizer and chemical equities have broadly outperformed, rising ~14% on average. This compares to a 5% gain in the S&P 500 and a 1% decline in the TSX Composite over the same period.
While the Middle East conflict continues to disrupt trade flows, fertilizer and methanol commodity markets were relatively subdued last week. U.S. fertilizer prices appear to have reached levels that challenge affordability, while buyer interest has also largely shifted to summer/fall fill requirements rather than prompt needs, writes analyst Hamir Patel.