(Updates prices and details throughout)

* TSX up 0.7%

* Energy shares and miners lead gains

* BoC rate decision awaited

By Tharuniyaa Lakshmi

June 8 (Reuters) - Canada's main stock index rose on Monday,

as signs of easing tensions in the Middle East lifted sentiment

after Iran said its first wave of attacks on Israel had ended,

raising hopes of a potential de-escalation in the wider

U.S.-Iran war.

At 9:58 a.m. ET, the Toronto Stock Exchange's S&P/TSX

composite index was up 0.7% at 34,674.08 points.

* Iran's military announced on Monday that its first wave of

attacks on Israel since a ceasefire announced in April was now

over, although it threatened to resume the strikes if Israel

continued attacks on Lebanon.

* "For the markets, they're taking it more in stride now.

It's like anything that goes on for a long period of time... the

bar is very high to have an effect," said Allan Small, senior

investment advisor at Allan Small Financial Group with iA

Private Wealth.

* Eight of the 10 TSX sectors were in the green, with energy

stocks up 2.3%, leading gains, as oil prices rose

around 1%.

* The materials group, which includes stocks of

metal miners, also gained 0.9%, with 5N Plus ( FPLSF ), K92

Mining ( KNTNF ) and Ivanhoe Mines ( IVPAF ) up between 3.2% and

5.3%.

* Industrials also rose 0.7% as TD Cowen raised

price targets on Canadian defence companies, with Magellan

Aerospace ( MALJF ) and AirBoss of America ( ABSSF ) up 6.6% and

5.3% respectively.

* Investors will closely watch the Bank of Canada's interest

rate decision due on Wednesday for cues on the policy outlook.

* The Bank of Canada is expected to hold rates steady this

month, while traders have priced in a little over one

25-basis-point hike by year-end, according to LSEG data.

* "The fact remains that growth is anemic, almost

non-existent and along with that costs and prices remain high,

pointing to more of a stagflation-type environment. The Bank of

Canada is in a tough spot right now," Small said.