Canada’s

S&P/TSX composite index

and the Dow Jones industrial average have pared their steep losses from early Tuesday, but remain down at least 300 points as conflict in the Middle East roils markets.

As of mid-day Tuesday, the TSX had fallen 713 points and the Dow had tumbled by 332 points.

The war in Iran has entered its fourth day, and it remains unclear when it might end as

U.S. President Donald Trump

has

vowed to do “whatever it takes.”

European and Asian stock markets headed for their worst two-day drop since April and South Korean markets fell 7.2 per cent.

Meanwhile, Brent crude climbed more than 4.5 per cent to US$81.22, briefly surpassing US$85 for the first time since July 2024. West Texas Intermediate climbed 4.8 per cent to US$74.50.

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Energy prices could remain elevated for the foreseeable future as Middle East refineries, including the world’s largest liquified natural gas plant in Qatar, shut down operations. The conflict is also blocking the Strait of Hormuz, a crucial passageway for about a fifth of the world’s oil shipments.

With files from Bloomberg News