TORONTO — Canadian and U.S. stock markets moved lower on Thursday as rising oil prices weighed on investor sentiment.

The S&P/TSX composite index was down 10.11 points at 36,136.31. The consumer cyclicals sector weighed on the index while the energy sector saw gains.

Theresa Shutt, chief investment officer at Harbourfront Wealth Management, said concerns about the U.S.-Iran war were weighing on the stock market as higher oil prices reinforce inflationary concerns.

“The real test will be if there is a de-escalation, if we see this relief rally again because we tend to see that,” she said.

“At some point the market has to start seeing through this roller-coaster for what it is … it is a crisis, and we’re nowhere near solving it. I think this should weigh on the market and people should be taking a risk-off (stance),” she said.

Oil prices gained ground as uncertainty remains over the war, which has stifled the global flow of oil.

Iran has said that it is close to a deal with Oman for reopening the Strait of Hormuz. U.S. President Donald Trump has also previously said a deal is close, but the conflict has had many starts and stops over the last five months.

A fifth of the world’s traded oil and natural gas once passed through the Strait of Hormuz. Oil prices surged as high as US$113 during the conflict and higher prices have added more heat to inflation by raising the price of gasoline and costs for shipping.

The September crude oil contract for North American benchmark West Texas Intermediate was up US$2.07 at US$77.29 per barrel. The price of Brent crude, the international standard, rose 3.8 per cent to US$82.49.

In New York, the Dow Jones industrial average was down 464.02 points at 53,885.10. The S&P 500 index was down 13.59 points at 7,709.96, while the Nasdaq composite was down 15.09 points at 26,348.35.

Shutt said AI companies continue to have significant influence, but face challenges.

“Just a straight beat is no longer gaining excitement; everything’s been priced to perfection, so this could be some profit taking, but I think really it’s maybe a risk-off sentiment just in light of what’s happening in Iran,” she said.

On Friday, investors will be watching for Canadian and U.S. jobs data.

“The market will be watching labour force participation and wage gains as well as job composition,” Shutt said.

“There’s been some belief that the lower unemployment numbers reflect more people exiting the market versus more employment, so that will be something that people will need to dive into.”

The Canadian dollar traded for 71.34 cents US compared with 71.30 cents US on Wednesday.

The December gold contract was up US$5.60 at US$4,299.60 an ounce.

This report by The Canadian Press was first published Aug. 6, 2026.

—With files from The Associated Press

Companies in this story: (TSX: GSPTSE, TSX: CADUSD, TSX: LCNQ, TSX: SU)

Daniel Johnson, The Canadian Press