The S&P/TSX Composite Index fell 0.7% to close at 34,041 on Wednesday as investors assessed the outlook for restrictive monetary policy and elevated energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz, while concerns over stagflation pressures and rising bond yields continued to weigh on banks and the broader market. BMO fell 1.4% and Royal Bank of Canada lost 1.2%. Meanwhile, gold prices extended declines after stronger-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. Agnico Eagle slipped 0.6% and Barrick dropped 2.1%. Elsewhere, Equinox Gold fell 2.1% after announcing plans to acquire Orla Mining (+0.8%) in a deal that would create a North America-focused gold producer valued at roughly $18.5 billion. Boyd Group slumped 12% after first-quarter sales missed forecasts.