* TSX up 0.18 %

* Oil and gold prices rise

* Barrick Mining ( B ) climbs after Q1 profit beat

(Updates to close)

May 11 (Reuters) - Canada's main stock index closed in

the green and hit its highest level in nearly three weeks on

Monday, supported by gains in oil and metal stocks as investors

weighed the impact of the Middle East conflict.

The Toronto Stock Exchange's S&P/TSX composite index

was up 0.18% at 34,138.88 and closed at its highest

since April 21.

Materials and gold both rose over 3% and

energy stocks gained 1.7% as precious metals and oil

prices rose.

President Donald Trump's swift rejection of Iran's response to a

U.S. peace proposal fueled concerns that the 10-week-old

conflict will drag on and keep shipping through the Strait of

Hormuz paralyzed, pushing up oil prices.

"The headline is about stalemate in the Iran negotiations

that is driving crude oil prices higher," Angelo Kourkafas, a

senior global investment strategist at Edward Jones, said.

"For now, in the U.S. and globally, the AI story is driving

the gains. In Canada, it's oil prices, the material sector, and

that's probably going to persist," he said.

The Bank of Canada kept its key interest rate unchanged last

month but Governor Tiff Macklem said if oil prices remained high

and started to push up inflation, it might have to respond with

consecutive rate hikes.

"It comes down to the fact that we are seeing accelerating

earnings growth, and that is allowing investors to look through

that headline volatility and focus on corporate fundamentals for

the TSX," Kourkafas said.

Barrick Mining ( B ) jumped 9% and was among the top gainers

on the TSX index after the miner beat estimates for

first-quarter profit, helped by record gold prices.

Cronos ( CRON ) climbed 8% after the cannabis producer's

first-quarter net revenue soared 40%, helped by sales in Israel

and other countries that do not carry excise taxes.