Oil's Biggest Jump Since 2020 Drags TSX and Wall Street Lower — Markets Update

 

Oil's Biggest Jump Since 2020 Drags TSX and Wall Street Lower as Hormuz Tensions Flare — Tuesday, July 14, 2026

All figures below reflect confirmed closing prices from Monday, July 13, 2026. Markets are open today, Tuesday, July 14.

The bottom line: Oil prices posted their biggest one-day jump since 2020 after President Trump said the U.S. would reinstate a naval blockade on Iranian shipping through the Strait of Hormuz and charge a 20% toll on cargo passing through it. The TSX slipped despite a strong tailwind from energy stocks, while Wall Street fell harder on renewed AI/chip stock weakness. Gold slid as investors priced in a more hawkish Fed. All eyes now turn to today's U.S. inflation report and tomorrow's Bank of Canada rate decision.

🇨🇦 Canadian Markets

S&P/TSX Composite	35,252.72	-52.59 (-0.15%)
CAD/USD	$0.71 US	Essentially unchanged

The TSX Composite closed lower Monday, falling 0.15% to 35,252.72, as weakness in materials, consumer discretionary and financials outweighed a strong bid for energy shares. Thomson Reuters was the session's standout, surging 5.17% to $133.22. Energy producers including Canadian Natural Resources, Suncor, Imperial Oil and Cenovus climbed alongside crude prices, but mining and gold-linked names came under heavy pressure as bullion prices tumbled. The index remains within close range of its 52-week high of 35,629.89 and is up more than 11% year-to-date, but government bond yields rose across North America Monday as investors weighed the inflationary implications of surging oil — a dynamic with direct bearing on the Bank of Canada's rate decision this week. The loonie held steady around 70.7 cents US, with its usual sensitivity to oil prices offset by broader safe-haven demand for the U.S. dollar.

🇺🇸 U.S. Markets

Dow Jones Industrial Average	52,498.64	-138.37 (-0.26%)
S&P 500	7,515.34	-60.05 (-0.79%)
Nasdaq Composite	25,873.18	-408.43 (-1.55%)

Wall Street sold off Monday after Trump announced the renewed Hormuz blockade and cargo toll, with the Nasdaq bearing the brunt of the decline as chip and memory stocks tumbled. Newly-listed SK Hynix, which jumped 13% on its Friday U.S. debut, fell 9.3% Monday, while other AI-linked names came under pressure alongside the broader risk-off move. Financials and energy shares held up better ahead of a busy week of bank earnings. Ahead of today's session, futures were little changed as traders await the June Consumer Price Index at 8:30 a.m. ET — economists expect a 0.2% monthly decline, with annual inflation seen at 3.9%. JPMorgan, Bank of America, Wells Fargo, Citigroup and Goldman Sachs all report second-quarter results today, with analysts expecting one of the strongest bank earnings seasons in years. IBM shares tumbled roughly 20% in premarket trading after preliminary results fell short of expectations. Fed Chair Kevin Warsh also begins two days of semiannual testimony before Congress this week.

🌍 European & Asian Markets

FTSE 100 (London)	-0.01% (flat)
DAX (Frankfurt)	+0.08%
CAC 40 (Paris)	+0.31%
Nikkei 225 (Tokyo)	-1.9% to 67,242.73
Kospi (Seoul)	-8.95% to 6,806.93
Hang Seng (Hong Kong)	+0.16% to 24,213.72
Shanghai Composite	-2.06% to 3,913.79
ASX 200 (Australia)	+0.03% to 8,808.50

European bourses shrugged off early losses to close essentially flat, with energy majors Shell, BP and TotalEnergies all gaining on the oil spike while tech names lagged. Asian markets bore the brunt of the risk-off move: South Korea's Kospi plunged nearly 9% — its worst level since early May — as post-IPO profit-taking hit SK Hynix (-15%) and dragged down Samsung Electronics (-11%). Japan's Nikkei fell 1.9% on rising input-cost concerns and a broader chip-stock selloff, while mainland China's Shanghai Composite dropped 2.1%. Hong Kong's Hang Seng and Australia's ASX 200 were roughly flat.

🛢️ Commodities & Currencies

WTI Crude (Aug.)	$78.14 US/barrel	+9.4%
Brent Crude (Sept.)	$83.30 US/barrel	+9.6%
Gold (Aug. futures)	$4,006.35 US/oz	-2.61%
CAD/USD	$0.71 US	Flat

Oil recorded its biggest one-day gain since 2020 after Trump's blockade and toll announcement, with Brent posting its best single-day performance since May 2020. Prices extended their advance into Tuesday trading, with WTI pushing above $80 and Brent topping $87 as the U.S. carried out a third consecutive night of strikes on Iran. Gold fell for a second straight session, sliding more than 2.6% as expectations of a more hawkish Federal Reserve reduced the appeal of the non-yielding metal.

What it means for you: Higher oil prices will likely show up at the pumps within days, which is worth factoring into your budget this week. If you hold TSX energy names or dividend payers like Suncor or Canadian Natural Resources, Monday's rally is a reminder of how quickly commodity-driven gains can offset weakness elsewhere in your portfolio — a good moment to check you're properly diversified ahead of Wednesday's Bank of Canada decision.

Looking Ahead

• Today (July 14): U.S. June CPI report at 8:30 a.m. ET; major U.S. bank earnings (JPMorgan, BofA, Wells Fargo, Citigroup, Goldman Sachs); Fed Chair Kevin Warsh begins two-day Congressional testimony.
• Tomorrow (July 15): Bank of Canada interest rate decision — widely expected to hold at 2.25%.
• Ongoing: Escalating U.S.-Iran conflict over the Strait of Hormuz remains the dominant swing factor for oil prices and broader market sentiment this week.

This article is for informational purposes only and does not constitute financial advice. Market data reflects confirmed closing prices as of Monday, July 13, 2026, cross-referenced across multiple sources. MoneySavings.ca — Canadian Money Brief.