TSX Stays Flat Amid Escalating U.S.-Iran Tensions

By EC Assets · Published 20 April 2026 · Updated 28 May 2026

The Toronto Stock Exchange remained flat as renewed tensions between the U.S. and Iran impacted market sentiment. This occurred amid an intensifying exchange of threats between Iran and the U.S.-Israel. The conflict has seen Iran issue warnings, including targeting buyers of U.S. Treasury bonds. Oil prices recently dropped to five-week lows following the reopening of the Strait of Hormuz. Despite this, some U.S. stock indices have experienced significant swings. The S&P 500 notably recorded its first intraday and closing record highs since the start of the conflict. Conversely, U.S. stocks have generally performed worse compared to previous geopolitical shocks. The S&P 500 is down 7.4% since the Iran conflict began. This decline is deeper than the median 6.1% drop seen during comparable past events, suggesting potential for further downward movement. In response to market conditions, strategists at Morgan Stanley have adjusted their outlook. They lowered their rating on global stocks. These strategists advise investors to increase holdings in cash and U.S. Treasury securities, advocating for a more defensive posture. This article is intended for informational purposes only. It does not constitute investment advice.