A genuine Strait of Hormuz escalation and a fresh 19 year high in long yields hit the tape on the same afternoon. Only one of them moved gold.

Statistics Canada's July inflation surprise and the Geopolitical desk's Hormuz toll deadline were written up this morning as two unrelated stories. They are the same mechanism, a few hours apart.

Friday's sector rotation mirrored Thursday's record close in reverse, and oil's refusal to react to stalled Hormuz talks confirms the story has moved from supply to demand.

Wednesday's fourth consecutive record close paired financials with gold miners. Thursday broke the pairing apart, and a cooler U.S. inflation print did not do for Canadian yields what it did for the Fed.

A cooling US CPI print eased yields across North America Wednesday, but the TSX's fourth straight record now runs on gold, not oil, and Canada's own economic data still sits underneath the Fed's good news.

Deal-hope optimism sent the TSX to a financials-led record while Canada's 10-year yield spiked to a 26-month high on the same day, pricing the same story two different ways.

WTI and Brent jumped roughly 4 percent as Washington and Tehran each pointed to the naval blockade as the actual obstacle, a sharper claim than either side has made in weeks. Gold barely moved and the Canadian dollar stayed flat, leaving the loonie without the lift its own yield advantage and oil's rally would normally provide.

USD/CAD broke to its lowest level since June on today's jobs divergence, but the five-year yield that sets mortgage renewal rates gave back most of its spike by midday, leaving two markets pricing two different stories from the same data.

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.