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5 Things to Know Today: Markets Near Records, Rates Hold, Oil Eases

  Here's what Canadian money watchers need to know as we head into the week: 1. TSX Hits Record Territory Amid Diplomatic Optimism The S&P/TSX Composite Index is hovering near 35,000 , approaching record levels as markets digest positive signals from U.S.-Iran negotiations. Senior officials say a deal to reopen the Strait of Hormuz could be signed at next week's G7 summit, easing geopolitical tensions and supporting oil-sensitive sectors. Financial stocks led gains—RBC, TD, and BMO all rose about 0.5–1%—while mining names like Agnico Eagle and WPM climbed despite softer gold prices. What it means for your wallet: A more stable geopolitical backdrop and lower oil prices could ease inflation concerns, improving conditions for your savings and investments. 2. Bank of Canada Holds Rates at 2.25% for Fifth Time On June 10, the BoC kept its benchmark overnight rate steady at 2.25% —marking five consecutive holds since October 2025. Governor Tiff Macklem cited a "two-directi...

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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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