Aug 31 (Reuters) - Futures tracking Canada's blue-chip stocks inched up on Monday, as oil prices gained on renewed U.S.-Iran hostilities in the Strait of Hormuz, while the index was on track for a fifth straight monthly gain.
September futures on the S&P/TSX index were up 0.12% at 06:30 a.m. ET (1030 GMT), though trading volumes were low.
The U.S. attacked Iran's Larak Island in the Strait of Hormuz on Sunday, and Tehran retaliated by attacking two U.S. air bases in Jordan, sending oil prices up over 3%.
The TSX is set for its fifth month of gains, lifted by a stellar rally in miners, on the back of gains in metal prices. The sector (.GSPTTMT), has gained over 27% in August.
Investors were also assessing increased chances of an interest-rate hike by the U.S. Federal Reserve next month, after Chair Kevin Warsh reiterated the central bank's stance on bringing inflation down in his Jackson Hole speech on Friday.
Markets now see a more than 60% chance of a hike next month, compared to about 41% a week ago, per CME's FedWatch tool.
The U.S. employment report, due on Friday, could further influence expectations of the Fed's monetary policy path, and set the tone for global markets.
In Canada, the central bank will announce its next policy decision on Wednesday and is widely expected to keep interest rates on hold at 2.25%.
A domestic employment report and S&P Global's business manufacturing survey will also be in focus this week.
Canada's main TSX index ended down for two consecutive weeks on Friday, despite robust results from major domestic banks that wrap up the corporate earnings season.
Markets will also monitor any developments in U.S.-Canada trade ties.
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Reporting by Purvi Agarwal in Bengaluru; Editing by Shreya Biswas
