Oil Price Surge and Trade Tensions Send TSX Futures Lower

TSX futures declined on Wednesday as oil prices surged past $100 a barrel, fueling concerns about inflation. The S&P/TSX 60 index standard futures contract fell by 8 points, or 0.4%, while US stock futures were also lower, with the Dow Jones Futures dipping 206 points, or 0.4%.

The intensifying trade war between the US and Canada added to the market's unease, with Washington imposing new tariffs on some Canadian imports in response to Ottawa's own retaliatory measures. The Strait of Hormuz, a critical shipping channel, has been closed to commercial vessels due to escalating tensions with Iran.

Oil prices remained high, with Brent crude hovering at $100.70 per barrel, while gold prices rose as the US dollar weakened. Analysts now predict a 60% chance that the Federal Reserve will raise interest rates by 25 basis points next Wednesday in an effort to curb inflation.