CANADA STOCKS-TSX rises as Trump delays strikes on Iranian energy infrastructure

By Rashika Singh

March 23 (Reuters) - Canada's main stock index gained on Monday after U.S. President Donald Trump said he would hold off on military strikes against Iranian energy facilities, easing fears of a major escalation in the Middle East war, now in its fourth week.

At 10:52 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 2% at 31,943.43.

Precious metals edged up and oil prices fell, pointing to a modest pickup in risk sentiment across the market. However, analysts remained cautious amid conflicting signals from the U.S., Israel and Iran.

"The broader market remains highly sensitive to shifting headlines around the Middle East conflict," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth. "Nobody knows what's going on as mixed signals from Washington and Tehran continue to whipsaw sentiment," he said.

Iran's Fars News Agency, citing a source, said there was no direct or indirect communication with the U.S. Meanwhile, Israel said its military was carrying out strikes on Iran.

Eight of 11 major sectors on the TSX were trading in positive territory, with materials .GSPTTMT leading gains.

The sector rose 4.3%, lifted by a rebound in gold and silver as fears of runaway inflation tied to the conflict eased somewhat. GOL/

Technology stocks .SPTTTK rose 4%, tracking a rebound in Wall Street peers.

Energy shares .SPTTEN fell around 2% after crude prices slumped nearly 12%, a notable drag for the Canadian market, given the sector's heavy index weightage and the country's reliance on energy exports. O/R

Amid volatility in oil prices due to Middle East tensions, the TSX recorded its third straight weekly loss last week and is off about 7.6% from before the start of the war.

Investors are also keeping an eye on transportation headlines after an Air Canada AC.TO Express CRJ‑900 struck a Port Authority emergency vehicle on the LaGuardia runway late Sunday, leaving the pilot and co‑pilot dead and injuring more than a dozen others, U.S. authorities said. However, the company's shares were up 3.8%, as easing oil prices helped lift travel-related stocks broadly across markets.