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TSX Eyes Gains as Trump-Xi Summit Looms and Oil Steadies Near $95

Canadian Money Brief · Monday, May 11, 2026 Canadian equities are set for a cautious but constructive open this Monday as investors balance a packed macro calendar against an energy sector still reeling from one of its most volatile weeks in recent memory. TSX at a Glance The S&P/TSX Composite closed Friday at 34,077.76 , up 221 points (+0.65%) to cap a week dominated by whipsaw oil moves and a fragile Middle East ceasefire. The energy sector has led TSX gains over the past seven days — up roughly 5% — even as WTI crude fell about 7% on the week, settling near $95.42 per barrel . That apparent contradiction reflects Canadian producers' longer-term optimism on supply tightness rather than any single day's price swing. For the year, the TSX is up approximately 35%, outpacing most major global benchmarks. The Big Story: Trump Heads to Beijing All eyes this week will be on Washington and Beijing. President Donald Trump is scheduled to arrive in China on Wednesday , with formal ...

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U.S. and Iran tensions escalate after rocket attacks in Iraq

 

The U.S. and Iran are locked in a cycle of violence that threatens to spiral out of control, as both sides exchange rocket attacks and warnings in Iraq. The latest round of hostilities began on Sunday, when Iran-backed militias fired rockets at a U.S. base near Baghdad, killing a U.S. contractor and wounding several others. The U.S. responded by launching airstrikes on militia targets in Syria and Iraq, killing at least four fighters and injuring dozens more.

The U.S. said the strikes were a “proportionate” and “defensive” response to deter future attacks, but Iran and its allies condemned them as a “flagrant violation” of Iraqi sovereignty and international law. Iran’s foreign ministry spokesman said the U.S. was “taking the wrong path” and warned of “consequences” for its actions. The militias vowed to avenge their fallen comrades and continue their resistance against the U.S. presence in Iraq.

The situation has put the Biden administration in a difficult position, as it seeks to revive the 2015 nuclear deal with Iran that was abandoned by former president Donald Trump. The deal, which lifted sanctions on Iran in exchange for curbs on its nuclear program, was seen as a way to ease tensions and prevent a regional war. However, the deal has been unraveling since Trump withdrew from it in 2018 and reimposed harsh sanctions on Iran, prompting Iran to resume its nuclear activities and increase its support for militias in the region.

Biden has expressed his willingness to rejoin the deal, but only if Iran returns to full compliance first. Iran, on the other hand, has demanded that the U.S. lift all sanctions before it reverses its nuclear steps. The two sides have not yet agreed on a format or a timeline for negotiations, and the recent violence has further complicated the prospects for diplomacy. Some analysts fear that the escalation could undermine the chances of a peaceful resolution and push the region closer to the brink of war.

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