May 4 (Reuters) - Futures for Canada's main stock index inched down on Monday as uncertainty over a U.S.-Iran peace deal fueled fears that oil prices could remain elevated for an extended period and stoke inflation.
June futures on the S&P/TSX index were down 0.1% at 6:17 a.m. ET (1017 GMT).
Iran warned U.S. forces on Monday not to enter the Strait of Hormuz after President Donald Trump said the United States would "guide out" ships stranded in the Gulf by the U.S.-Israeli war on Iran.
Oil prices rose 1% as the lack of a U.S.-Iran peace deal continued to support prices.
Spot gold and silver fell 1.5% and 2.9% respectively, weighed down by inflation worries that clouded the U.S. monetary policy outlook.
GOLD/
The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), ended lower on Friday and left the index barely changed for the week, as losses for resource shares offset gains for technology and investors weighed prospects of diplomatic progress in the Iran war.
As of Friday's close, the benchmark index was ~2% below its March 2 peak, showing how the U.S.-Iran conflict has weighed on sentiment in Canada’s energy‑heavy market despite some support from firm oil prices.
Investors are also monitoring corporate earnings in the U.S. and Canada to gauge how companies are tackling headwinds from the Iran war.
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(This story has been corrected to say TSX, not TSP, in the headline and the first bullet)
Reporting by Tharuniyaa Lakshmi in Bengaluru
