Oil Surges Toward $95 as Iran Conflict Escalates: Markets Update for July 22

 

Wednesday, July 22, 2026 

Canadian markets clawed back Monday's losses on Tuesday, but that relief is already under pressure this morning. Crude oil jumped past $94 a barrel overnight after an 11th straight round of U.S. strikes on Iran, and U.S. futures are pointing lower as investors weigh higher energy costs against a busy week of tech earnings. Here's what moved markets and what it means for your wallet.

🇨🇦 TSX: Snapping Back From a 12-Day Low

The S&P/TSX Composite rebounded +408.76 points (+1.17%) to close at 35,369.08 on Tuesday, recovering most of Monday's 303-point drop that had pushed the index to a 12-day low. Energy and mining names led the bounce as commodity prices firmed, while financials — Monday's biggest drag — steadied.

Index	Close	Change
S&P/TSX Composite	35,369.08	+408.76 (+1.17%)

Note: figures reflect Tuesday's (July 21) close, the most recent completed TSX session as of this morning's report.

🇺🇸 US Markets: Chip Stocks Carry Wall Street Higher — For Now

All three major U.S. indexes broke a three-day losing streak on Tuesday as semiconductor names rallied on strong Taiwanese and South Korean export data ahead of this week's Big Tech earnings from Alphabet, Tesla, Intel, and IBM.

Index	Close	Change
Dow Jones	52,224.64	+385.38 (+0.74%)
S&P 500	7,509.20	+0.89%
Nasdaq Composite	25,837.21	+329.13 (+1.29%)

This morning's futures are softer: Dow futures are down modestly, while S&P 500 futures (-0.3%) and Nasdaq-100 futures (-0.6%) are also lower as the overnight oil spike weighs on sentiment ahead of the open.

🌍 Europe & Asia: Mixed Overnight Session

European markets are weaker in Wednesday trading, with technology shares under pressure while energy stocks find support from higher oil prices. In Asia, the picture was mixed: Japan's Nikkei 225 and Hong Kong's Hang Seng traded lower, while South Korea's Kospi and Australia's ASX 200 advanced.

🛢️ Commodities & Currency

Asset	Price	Change
Brent Crude	~US$94.93/bbl	+4.8%
WTI Crude	~US$88.12/bbl	+4%+
Gold (spot)	~US$4,097/oz	holding near recent range
USD/CAD	1.4086	CAD +0.15%

The loonie firmed slightly against the greenback, helped by strength in oil — Canada's dollar tends to track crude prices given the energy sector's weight in the economy.

💡 What It Means for You

Every $1 rise in oil tends to filter through to the pump within days, so expect gas prices to keep climbing if the US-Iran conflict escalates further. If you're renewing a mortgage or carrying a variable rate, keep an eye on bond yields too — U.S. 10-year yields ticked up alongside the oil move, and Canadian rates often follow. On the flip side, a firmer loonie is modestly good news if you're planning U.S. travel or online shopping in USD.

👀 What to Watch

• Any further escalation or de-escalation headlines out of the US-Iran conflict — this is the dominant driver of oil and, by extension, TSX energy stocks and the loonie.
• Big Tech earnings this week (Alphabet, Tesla, Intel, IBM) — could determine whether the chip-stock rally has legs or fades.
• Continued fallout from the new 50% U.S. tariff on select Canadian goods (effective August 19), which remains an overhang on TSX industrials and exporters.

Market data compiled from TMX/TSX, CNBC, Yahoo Finance, Trading Economics, and BNN Bloomberg as of the morning of July 22, 2026. Figures are subject to change as markets trade throughout the day. This article is for informational purposes only and does not constitute financial advice.