July 8 (Reuters) - Futures tracking Canada's resource-heavy benchmark index fell on Wednesday as renewed U.S.-Iran tensions cast doubt over the durability of a fragile ceasefire in the Middle East and pushed up oil prices, reviving inflation fears.
Futures tracking the S&P/TSX Composite index were down 1.1% at 6:52 a.m. ET.
o Oil prices climbed to a two-week high after U.S. President Donald Trump said the memorandum of understanding with Iran to end the conflict was "over", renewing fears over potential disruptions to global energy supplies.[O/R]
o Brent crude futures gained 5.1% to $77.94 a barrel, while U.S. West Texas Intermediate crude inched up 4.9% at $73.92 after Trump's remarks.
o Gold prices also slipped as higher energy prices stoked concerns over inflation and higher interest rates. Spot gold fell 1.3%, while silver shed 2.5%. [GOL/]
o Investors are awaiting minutes of the U.S. Federal Reserve's meeting, due at 2:00 pm ET, for cues on the future monetary policy path.
o A soft U.S. jobs report last week amid signs of easing Middle East tensions had tempered expectations of multiple U.S. interest rate hikes this year.
o Traders are pricing in an increase of 36 basis points to U.S. borrowing costs by the end of this year, according to LSEG data.
o Meanwhile, the Bank of Canada is expected to keep interest rates unchanged this year, with the next policy decision due on July 15.
o In company news, Trilogy Metals reported a wider second-quarter loss.
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(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Diti Pujara)
