March 26 (Reuters) - Futures linked to Canada's main

stock index edged lower on Thursday, as investors remained wary

amid conflicting signals from the U.S. and Iran on the Middle

East war.

June futures on the S&P/TSX composite index were

down 0.8% as of 06:20 a.m. ET (1020 GMT).

* U.S. President Donald Trump said Tehran wanted to

"badly" strike a deal to end the war, contradicting the Iranian

foreign minister, who said his country was reviewing

Washington's proposal but had no intention to hold talks.

* The mixed signals kept market participants on edge, as

prospects for flows being restored through the key Strait of

Hormuz remained unclear.

* Crude oil climbed about 2% on concerns that prolonged

fighting in the Middle East could further disrupt energy

supplies.

* Meanwhile, gold slipped onexpectations that the U.S.

Federal Reserve could hike rates this year as higher oil prices

threaten to spike inflationary pressures.

* Traders expect the Bank of Canada to keep rates unchanged

at its April meeting, with markets now pricing in nearly three

hikes by year-end, LSEG data shows.

* However, the conflict-driven rise in oil prices, with no

clear end to the war in sight, could complicate central banks'

interest rate outlook.

* On Wednesday, the TSX ended higher for a third

straight session, marking its strongest close since March 17, on

signs of diplomatic progress in the Middle East, though the

optimism was short-lived.

* Among individual movers, eyes will be on retailer

Alimentation Couche-Tard ( ANCTF ) after J.P.Morgan initiated

coverage on the stock with an "overweight" rating, and telecom

firm Cogeco Communications ( CGEAF ) after TD Cowen downgraded it

to "hold" from "buy". FOR CANADIAN MARKETS NEWS, CLICK ON

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