The S&P/TSX Composite Index fell 1% to close at 34,801 on Wednesday, retreating from the record high reached in the previous session as renewed hostilities between the US and Iran dampened hopes for a peace deal. Tensions escalated after Iranian attacks targeted Kuwait and Bahrain, while the US carried out strikes near the Strait of Hormuz. Oil prices rose, reviving concerns about energy-driven inflation and higher borrowing costs. Financial stocks traded lower, with BMO down 1.5%, while Brookfield lost 3.4% after announcing a joint venture with a Concert Properties affiliate involving an industrial portfolio valued at roughly $1 billion. Mining shares also weighed on the index as gold prices declined, with Agnico Eagle falling 3.6%, Barrick losing 2.5%, and WPM shedding 3.5%. Technology stocks followed losses on Wall Street, with Shopify down 3% and Constellation Software retreating 4.7%.