The TSX Composite closed nearly flat after gold miners and Canadian banks moved double digits in opposite directions, while US indices fell broadly on a semiconductor selloff ahead of the FOMC minutes.

Banks and miners fell, energy rose, and a semiconductor selloff that started in the US spread to South Korea overnight.

Energy and gold names had a strong Monday. Technology and rate-sensitive names didn't. The 30-year Treasury yield hitting its highest close since 2007 is what decides which story wins Tuesday.

A vessel struck overnight, Iran's language just got sharper, and Trump has widened the threat to a third country. Oil is up, but nowhere near March's peak. That gap is the story.

Trump and Iran's foreign minister traded accusations over control of the strait, but the price move came from the IEA and OPEC's demand forecasts, not the conflict itself.

Wednesday's record TSX session came with a 12 percent single stock surge and a near 5 percent single stock decline on the same day. The sector rotation underneath the headline number is the more durable signal.

Canadian energy and industrial strength pushed the TSX composite to 36,475.92 on Tuesday, even as the Dow, S&P 500, and Nasdaq all closed lower on fading Hormuz optimism.

Strathcona Resources led an 8.74 percent gain on rising Hormuz-driven crude, while Monday's worst performers fell on unrelated company-specific news.

Gold miners carried the index to 36,381.23 while banks lagged on BoC risk. Monday's early tape already shows oil reclaiming the leadership gold held Friday.

Last week's oil selloff assumed a Hormuz deal was close. Iran's weekend preconditions confirm it is not, and the chain runs straight back to the Bank of Canada's inflation math.

A quiet 0.03% index decline masked a 27% single-stock collapse and a 13% share-offering hit, while a blowout Canadian jobs report set up a stronger Friday open.

Financials have gained 22% since the war began in February while materials fell 25%. The rotation behind that split, not Wednesday's single session, is what built the TSX's record, and Thursday's oil whipsaw shows the war that caused it hasn't actually ended.

On July 8, twenty-one days after the memorandum that defined June, the United States and Iran resumed open conflict. WTI round-tripped from a five-month low back above eighty-five dollars, Warsh's Fed sent long yields to a nineteen-year high, and the Strait of Hormuz closed the month at its worst traffic reading of the war.

The S&P/TSX Composite closed at 35,333.78, down 415.92 points a day after its record high. Canadian Natural and Cenovus both rose more than 4.5 percent on the same session TD and RBC fell more than 3, and that split is the story going into Thursday.

Houthi forces claimed a strike on Saudi Arabia's East-West Pipeline, the route built to move crude around the Strait of Hormuz entirely, the same day Oman proposed a formal Hormuz shipping mechanism. The base case still points to de-escalation, but the tail risk just moved to different infrastructure.

Oil's sharpest single session drop in weeks is pulling gold, bonds, and equity futures in the same bullish direction for a different reason. The TSX Composite, which closed Friday at 35,369.10, faces its steepest test of the sector rotation this month when energy names open.