(Updates at market close)

* TSX ends down 0.5% at 33,119.83

* Technology sector falls 2.9%

* goeasy slides 18.2%, adding to prior day's sharp

decline

* Energy stocks rise 2.6% as oil settles 4.55% higher

By Fergal Smith

March 11 (Reuters) - Canada's main stock index fell on

Wednesday as an escalating Middle East conflict weighed on

investor sentiment, with declines for mining and technology

shares outweighing gains for energy as oil prices climbed.

The S&P/TSX composite index ended down 150.82

points, or 0.5% at 33,119.83 points, after two straight days of

modest gains. On Friday, the index posted its lowest closing

level in more than two weeks at 33,083.72.

Iran said the world should be ready for oil at $200 a barrel

as its forces hit merchant ships and the International Energy

Agency recommended a massive release of strategic reserves to

dampen one of the worst oil shocks since the 1970s.

"The market is trying to reprice what the longer-term

implications are for this," said Derek Benedet, a portfolio

manager at Purpose Investments. "The reality of the situation is

that there could be some form of conflict for an ongoing period

of time so they're trying to reprice that."

The technology sector fell 2.9%, with shares of

application software company Constellation Software ( CNSWF )

down 8.1%.

Metal mining shares also lost ground as a stronger U.S.

dollar weighed on gold and copper prices.

The materials group, which includes metal miners,

declined 1% and consumer staples ended 1.5% lower.

Shares of non-prime consumer lender goeasy tumbled

18.2% after more than halving in value in the previous session,

as the company flagged a charge-off of about C$178 million

($131.09 million) and write-downs tied to its LendCare unit.

Three of the 10 major sectors ended higher, including energy

, which advanced 2.6%. The price of oil settled

4.55% higher at $87.25 a barrel as supply disruption fears

worsened.

Canada will look at ways to increase its crude production to

help global efforts to stabilize oil prices in the face of the

Iran war, Natural Resources Minister Tim Hodgson said.