CANADA STOCKS-TSX futures inch lower as Middle East tensions, volatile oil keep markets on edge

March 20 (Reuters) - Futures linked to Canada's benchmark index ticked lower on Friday, leaving it poised for a third straight weekly decline, as cautious investors continued to monitor an escalating Middle East conflict that has pushed oil prices to record highs.

June futures on the S&P/TSX composite index SXFcv1 were down 0.5% as of 06:48 a.m. ET, while futures tracking Wall Street's main indexes also edged lower. .N

The U.S. is considering plans to occupy or blockade Iran's Kharg Island to pressure the country into reopening the Strait of Hormuz, a n Axios report said, even as Israel and Iran traded fresh attacks on Friday.

Leading European nations, Japan and Canada have issued a joint statement that they are ready to join efforts to secure safe passage for shipping through the crucial waterway, as supply disruptions send crude oil and natural gas prices soaring.

Benchmark Brent LCOc1 crude has jumped over 50% since the start of the conflict.

While this jump has lifted Canadian energy stocks .SPTTEN more than 38% this year, Canada remains highly sensitive to oil-market swings because the commodity is one of the country's largest exports.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE on Thursday closed down at its lowest level since January 30, extending its total decline to over 7% since the start of the Iran war.

Metal prices, also important for Canada's resource-heavy stock index, were mixed, with gold XAU= muted and silver XAG= down about 2%.

In a week packed with central bank meetings, most policymakers, including at the Bank of Canada, opted to hold interest rates steady, but reiterated they remained prepared to hike rates if inflation pressures re-emerged.

Among individual stocks, eyes will be on Interfor Corp IFP.TO, with CIBC raising the lumber producer's rating to "neutral" from "underperform," and dealership operator AutoCanada ACQ.TO, whose rating the brokerage downgraded to "neutral" from "outperform."

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