TSX Gains on Oil Price Drop, Iran Talks
The S&P/TSX Composite Index rose 0.5% to 35,801.09 as US crude oil futures fell 7.4% on hopes for an end to the US-Israeli war with Iran.
Updated on Nov. 2, 2026 in Stock Markets
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The S&P/TSX Composite Index ended up 181.06 points at 35,801.09 on Monday, recouping some of Friday's steep decline. Industrial and metal mining shares led broad-based gains as US crude oil futures settled 7.4% lower at $96.46 a barrel.
Why it matters
A sharp drop in oil prices boosted investor sentiment at the start of a new month. Talks between Iranian and Qatari officials lifted hopes for an end to the US-Israeli war with Iran and stabilization of Middle East crude supply, which matters for Canada's energy-heavy index.
The index gained 181.06 points to 35,801.09 and the energy group dropped 4.8%, while Canada's 10-year yield eased 4.9 basis points to 3.750%. Whether the Middle East talks translate into sustained crude supply stability remains unresolved.
The players
S&P/TSX Composite Index
The benchmark index of the Toronto Stock Exchange, tracking the performance of the largest publicly traded companies in Canada.
WSP Global
A Montreal-based engineering and professional services firm whose shares were among the day's notable gainers.
The details
Industrials added 2.5% and WSP Global shares rose 5.4%, while financials gained 1% and the real estate sector ended 2.6% higher. Separately, Canada's manufacturing sector contracted in October for the first time this year.
Timeline
Friday: the index recorded a steep decline in the prior session.
October: the materials group tumbled 13.1%.
Monday, November 2, 2026: the index rallied and oil prices fell sharply.
Market Dynamics
Monday's 2.3% rebound in the materials group partially reverses the 13.1% slide it suffered in October, showing how sharply metal miners have swung with commodity prices this fall. Canada's index is now tracking Middle East diplomacy as closely as domestic economic data.
Investors holding energy and materials exposure saw their positions move sharply in either direction on Monday, so portfolio weightings in those sectors deserve a fresh look. Retirement and brokerage accounts tied to the TSX will reflect these swings directly.
The takeaway
Monday's rally shows that Canadian equities can recover quickly when oil and geopolitical risk ease, but the sector swings also underline the value of diversifying beyond energy and materials.
Further reading
For broader context on how index moves track commodity swings, see Stock Markets coverage across Canada.
Source note: This article includes information reported by Mint.
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