April 17 (Reuters) - Canada's main stock index rose sharply on Friday after Iran's move to open the Strait of Hormuz raised expectations that the conflict would end soon and normalize oil and gas supplies, lifting investor sentiment globally.
At 10:48 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index (.GSPTSE), was up 1.1% at 34,427.11 points, its highest since its March 2 peak, putting it firmly on track for its fourth straight week of gains.
Wall Street's key indexes also jumped, with the benchmark S&P 500 (.SPX), trading at record highs.
Iran's Foreign Minister Abbas Araqchi said in a post on X that the Strait of Hormuz was open following a ceasefire accord agreed in Lebanon, while U.S. President Donald Trump said a peace deal with Tehran would come "soon," although the timing remained unclear.
Nine of 11 TSX sectors were trading higher following the news.
The materials subindex (.GSPTTMT), which includes Canadian metal miners, led gains, advancing 3.65% as gold and silver climbed more than 1% and 4%, respectively.
Miners including Avino Silver and Gold Mines (ASM.TO), and NovaGold Resources (NG.TO), were among the top gainers.
The heavyweight financials index (.SPTTFS), was up 1.5%, while tech shares (.SPTTTK), rose 2.5%.
"As soon as the headline came, the algorithms kicked in, and all of a sudden, it's a sell-the-oil-and-buy-everything-else phenomenon," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
TSX energy shares (.SPTTEN), slumped 6.7% to their lowest levels since March 10, set for their biggest one-day drop in over a year, as oil prices plunged more than 11% following Iran's announcement.
Vermilion Energy (VET.TO), Canadian Natural Resources (CNQ.TO), and Baytex Energy (BTE.TO), fell between 11.4% and 8.8%.
Meanwhile, corporate earnings in the U.S. and Canada were also in focus as investors assessed the war's impact on businesses.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Jonathan Ananda
