CANADA STOCKS-TSX futures fall as Iran war resolution hopes fade

April 2 (Reuters) - Canadian index futures declined on Thursday as hopes of a swift end to the Middle East war faded after U.S. President Donald Trump signaled an escalation in attacks on Iran.

June futures on the S&P/TSX composite index SXFcv1 were down 0.9% as of 04:59 a.m. ET (0859 GMT).

• Uncertainty surrounding the conflict's timeline and objectives jolted global markets in March, pressuring equities while driving Brent crude to its best monthly showing on record.

• Crude was last trading near $107 a barrel, keeping energy stocks .SPTTEN in spotlight. O/R

• Gold fell from two-week highs as Trump flagged continued U.S. military action in Iran, pushing oil prices higher and dampening hopes of rate cuts by U.S. Federal Reserve. GOL/

• Bank of Canada is expected keep interest rates unchanged this month and traders are pricing in two quarter-point hikes by the end of the year, according to data compiled by LSEG.

• The central bank's governing council has agreed it will have to rely on its own judgment more than usual on rate decisions, given heightened global uncertainty, according to minutes released on Wednesday.

• Canada's benchmark stock index .GSPTSE rose to a three-week high on Wednesday after Trump signaled a resolution to the Middle East conflict could be within reach, before backtracking.

• The index was on track to end the week higher. It logged a 4.6% drop in March, its steepest monthly fall since May 2023.

• Volumes were thinner than usual as markets will be closed on Friday on account of the Good Friday holiday.

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