Markets Closed for Labour Day — Oil Just Hit a 2-Month High as Tuesday's Tariffs Loom

 

If you check your portfolio app this morning and it looks frozen, that's not a glitch. The TSX and every major U.S. exchange are closed today for Labour Day, so there are no new Canadian or American closing numbers to report. But the rest of the world didn't take the day off — and neither did the oil market, which is why this is still a markets story worth your coffee-break attention.

Over the weekend, the U.S. struck three Iranian oil tankers in retaliation for ballistic missile attacks on U.S. Navy warships, and Iran hit back by targeting tankers and other vessels linked to the U.S., while threatening to impose a "restricted" maritime zone beyond the Strait of Hormuz. Brent crude jumped toward $97 a barrel on Monday — its highest level since July — extending a rally that already had crude up roughly 9% last week, its strongest weekly performance since mid-July.

Add to that: Tuesday brings the reopening of Canadian and U.S. markets and the effective date of Canada's retaliation tariffs on roughly $27.6 billion of U.S. goods. It's shaping up to be a loaded week, and today is the calm before it.

Friday's Close: What You're Reopening To

Since North American markets are dark today, Friday, September 4 is still the most recent trading session. Stocks slipped after a much hotter-than-expected U.S. jobs report reignited bets on a Federal Reserve rate hike this month.

Index	Close (Fri., Sept. 4)	Change
S&P/TSX Composite	36,513.80	-119.32 (-0.33%)
Dow Jones Industrial Avg.	53,414.25	-271.86 (-0.51%)
S&P 500	7,718.60	-29.11 (-0.38%)
Nasdaq Composite	26,506.99	-77.07 (-0.29%)
VIX (Volatility Index)	~14.1	little changed

Sources: TMX/S&P TSX, CNBC, Yahoo Finance. Cross-verified across Investing.com and BNN Bloomberg.

The TSX's Friday dip snapped a two-session winning streak that included Thursday's 541-point surge. The culprit both days was the same tug-of-war: Canada's August employment fell by 41,700 (economists expected a gain of 15,000), a soft number that would normally argue for lower rates — but it was overshadowed by a blowout U.S. report showing 162,000 jobs added (versus ~55,000 expected), which pushed odds of a September Fed hike toward 60%. Financials led the TSX lower, with TD Bank down 1% and Scotiabank off 0.9%, while pullback in gold weighed on miners (Agnico Eagle -0.9%, Barrick -1.8%).

Overseas: Europe and Asia Are Trading Today

Unlike Canada and the U.S., Labour Day isn't a holiday in Europe or Asia, so those markets are live — and they're a useful preview of the mood heading into Tuesday.

Asia (Monday): Japan's Nikkei 225 jumped about 2% above the 66,300 mark, its second straight advance, led by chip and AI-linked names (Kioxia +7.2%, SoftBank Group +6.1%, Advantest +2.6%) after strong U.S. semiconductor sentiment on Friday. The Topix added 0.8%, and South Korea's Kospi rallied more than 3% on the same tech tailwind. It wasn't all green, though: Hong Kong's Hang Seng fell about 0.9% to roughly 25,428, pulling back from a two-week high as investors weighed the same U.S. rate-hike odds that hit Wall Street on Friday, with mainland benchmarks mixed (Shanghai Composite ~3,919, CSI 300 ~4,550).

Europe (Monday): A more cautious tone prevailed, with the Euro Stoxx 50 down about 0.2%. Investors are looking ahead to the European Central Bank's rate decision this Thursday, September 10 — markets widely expect the ECB to hike to 2.75%, with another increase priced in for December. That would put European and North American central banks on a similar hawkish footing for the first time in months.

Commodities and the Loonie

Commodity / Currency	Today (Mon., Sept. 7)	Move
Brent crude	~$97.05/bbl	2-month high
WTI crude	~$91.80-92.20/bbl	up sharply on week
Gold	~$4,392/oz	-0.8%, pulling back
Canadian dollar (USD/CAD)	~1.382 (72.3¢ US)	roughly flat

Sources: TradingEconomics, Kitco, Investing.com, MTFX. Figures reflect thin, holiday-affected trading and can move quickly.

Oil is the story. The weekend strikes mark the first direct U.S.-Iran exchange in about a month, and Tehran's threat of a "restricted" zone beyond the Strait of Hormuz — a corridor that typically handles roughly a fifth of the world's oil traffic — is exactly the kind of headline that keeps energy traders on edge. U.S. Energy Secretary Chris Wright says Washington intends to maintain its naval presence, including a blockade meant to curb Iranian oil exports while keeping commercial shipping moving. Gold, meanwhile, is doing the opposite of its usual "safe haven" move, sliding as traders instead lean into a stronger U.S. dollar on rate-hike bets. The loonie is holding steady near recent multi-week highs after the Bank of Canada's hawkish September 2 hold, but a firmer U.S. dollar this week could cap further gains.

💰 What It Means for You

At the pump: Remember, the federal gas tax pause that Ottawa extended through January 31, 2027 is already in effect — so there's no tax cushion left to offset rising crude. That means a 2-month-high Brent price could show up at Canadian pumps within days, particularly if Middle East tensions keep escalating.

At the checkout, starting tomorrow: Canada's retaliation tariffs take effect Tuesday, September 8 on roughly $27.6 billion of U.S. goods across six sectors — steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics — at rates up to 50%. If you've been holding off on a U.S.-made appliance, dairy product, or steel-heavy purchase, today is effectively the last day of the old pricing.

On your mortgage: Friday's strong U.S. jobs data and the BoC's openness to hikes both point the same direction. If you're renewing or holding a variable-rate mortgage, the next real signals land September 10 (ECB), September 11 (U.S. CPI), and September 16-17 (Fed decision) — worth watching before you lock in.

What's Ahead This Week

• Tuesday, Sept. 8: TSX and U.S. markets reopen; Canada's $27.6 billion retaliation tariffs on U.S. goods take effect.
• Thursday, Sept. 10: European Central Bank rate decision — a hike to 2.75% is widely expected.
• Friday, Sept. 11: U.S. August CPI (inflation) report — the last major data point before the Fed's meeting.
• Sept. 14-15: Canada Investment Summit in Toronto, targeting $1 trillion in investment over five years.
• Sept. 16-17: Federal Reserve rate decision — markets are currently pricing meaningful odds of a hike after Friday's jobs surprise.

We'll be back with full Tuesday coverage once the TSX and Wall Street reopen — and once we know exactly how Canadian retailers and manufacturers are absorbing the new tariff list.

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Market data as of the morning of September 7, 2026 and subject to change. This article is for informational purposes only and does not constitute financial advice. Always consult a licensed financial advisor before making investment decisions.