TORONTO — Canada’s main stock index and U.S. markets continued hovering around record highs on Wednesday as investors were hopeful that a deal to reopen the Strait of Hormuz could be getting closer.

U.S. President Donald Trump said an agreement to reopen the critical waterway could be announced soon, as Iran and Oman inched toward a deal that could ease pressure on the global economy and potentially help bring an end to the war.

The S&P/TSX composite index was up 344.83 points at 36,146.42.

In New York, the Dow Jones industrial average was up 263.24 points at 54,349.12. The S&P 500 index was down 12.97 points at 7,723.55, while the Nasdaq composite was down 221.55 points at 26,363.44.

It’s not the first time that hope surrounding a potential deal to end the war provided a jolt to the markets, but investors appeared optimistic this could be the moment many have been waiting for.

Regional officials told The Associated Press that Iranian and Omani negotiators had finalized a draft deal to reopen the strait, pending approval from Iran’s supreme leader.

“I don’t know what number we’re at, I stopped counting as to the possibility of a deal to get the Strait of Hormuz open, but certainly the latest leanings is that that is going to happen,” said Brent Joyce, chief investment strategist at BMO Private Wealth.

“I’ve been of the opinion that the pressure on both sides will eventually lead to some stasis that allows commodities to flow from the region. Perhaps this is the real one this time, and if it’s not, we’ll wash, rinse, repeat.”

The strait’s closure has blocked oil exports while driving up global fuel prices and overall inflation. That has put pressure on the pocketbooks of American consumers with months to go before midterm elections, Joyce noted.

“If that pressure comes with spot prices north of $100, that is the catalyst to push these combatants to the negotiating table,” he said.

North of the border, he called it a “banner day” for the TSX amid strength in technology stocks, especially Shopify Inc.

The company posted a US$1.5 billion profit in its latest quarter, it said Wednesday, pushing its share price up nearly 17 per cent.

“These have been market darlings for many years, and then earlier this year (there were) concerns about whether they were going to be disrupted by artificial intelligence,” said Joyce.

He said Shopify is proving its belief that artificial intelligence would complement its business rather than hinder it.

“Markets and participants, I think, were reasonable to be a bit skeptical. What would you expect them to say? But now they’re really showing that proof is in the pudding,” he said.

“The uptick in merchandise volumes for Shopify in particular (were) all very healthy and constructive, and on the spend side of things, reasonably contained.”

The Canadian dollar traded for 71.30 cents US, compared with 71.08 cents US on Tuesday.

The September crude oil contract was down 55 cents US at US$75.22 per barrel, while the December gold contract was up US$152.60 at US$4,305.20 an ounce.

—With files from The Associated Press

This report by The Canadian Press was first published Aug. 5, 2026.

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

Sammy Hudes, The Canadian Press