CANADA STOCKS-TSX futures tick lower on escalating Iran conflict, weaker metals

March 19 (Reuters) - Futures linked to Canada's main stock exchange inched lower on Thursday as an escalation in the Iran war following attacks on energy infrastructure across the Middle East jolted investors, while a slump in metal prices added further pressure.

June futures on the S&P/TSX index SXFcv1 were down 0.6% at 06:03 a.m. ET (1003 GMT).

Oil prices climbed again on Thursday with benchmark Brent LCOc1 hitting an over one-week high of more than $115 a barrel after Iran attacked energy facilities across the Middle East following Israel's strike on its South Pars gas field. O/R

While the spike in oil prices has lifted Canadian energy stocks .SPTTEN up more than 34% this year, outperforming peers, it has put global central banks in a bind over their monetary policy outlook.

The U.S., Canadian and Japanese central banks, among others, struck hawkish tones on Wednesday, with the Federal Reserve projecting higher inflation and a single reduction in borrowing costs this year.

Money markets pushed rate cut bets to April 2027, not fully pricing in one from the Fed this year, according to data compiled by LSEG.

"The Fed is choosing to look through the fog of conflict, for now. A dual mandate Fed is not going to rock the interest rate boat during a supply shock," said Jamie Cox, managing partner for Harris Financial Group.

Meanwhile, Bank of Canada warned of rate hikes this year to combat inflation, even as Canada remains better insulated from energy-driven price pressures than peers, being a net oil exporter.

The hawkish shift in expectations strengthened the dollar, dragging gold and silver to more than one-month lows and copper to a three-month low. MET/L GOL/

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