Canada’s main stock index fell more than 300 points on Monday as Statistics Canada reported June inflation at 2.8%, with lower gas prices cited as a key driver of the slowdown. The drop was broad, led by financials, and came even as energy stocks rose on higher oil prices amid ongoing U.S.-Iran tensions that also weighed on markets. Analysts said the softer inflation print supports the Bank of Canada keeping rates steady but isn’t providing a clear lift for Canadian equities. The U.S. added to the headwinds with NATO-style risk dynamics after the U.S. conducted airstrikes on Iran, and President Donald Trump warned of consequences, underscoring a global risk backdrop for oil flows through the Strait of Hormuz. The complex backdrop included the TSX’s 0.8% decline in closing trades, a weaker loonie, and a mixed sector rally for technology and energy stocks. Overall, traders are watching how July’s oil price movements and geopolitical tensions might affect consumer prices and equity sentiment in the weeks ahead.