(Updates to close)

* TSX down 0.15%

* Index dips due to fall in gold, material stocks

* Energy stocks rise as oil gains over 9%

* BoC expected to hold rates steady on Wednesday

July 13 (Reuters) - Canada's main stock index closed lower

on Monday, weighed down by gold and materials stocks, as bullion

prices took a hit after U.S. President Donald Trump said he was

reinstating a naval blockade on Iran, boosting oil markets and

reigniting inflation concerns.

The Toronto Stock Exchange's S&P/TSX Composite Index

was down 0.15% at 35,252.72 points.

* The index closed lower despite energy stocks

rising 3.17%, tracking higher oil prices that rose more than 9%.

* Trump said on Monday the United States was reinstating its

blockade of Iranian shipping in the Gulf and would ensure the

Strait of Hormuz stays open - for a fee - after the two sides

exchanged more missile and drone attacks.

* The materials and global gold indexes

fell 2.4% and 2.5%, respectively, tracking lower gold prices as

inflation concerns reinforced expectations that the U.S. Federal

Reserve could keep interest rates higher for longer.

* Financials fell 0.4%.

* Meanwhile, investors await the Bank of Canada policy

decision due on Wednesday.

* The Bank of Canada is expected to keep its key policy rate

unchanged at 2.25% on Wednesday, as signs of easing underlying

price pressures give policymakers little reason to raise

borrowing costs, while a rebound in economic growth after a

technical recession reduces the need for any stimulus.

* "The risks are fairly balanced. A weaker economy would

argue for lower interest rates, while inflationary pressures

could warrant higher rates. The Bank of Canada does not have a

clear view on the direction of its next move, which will depend

on factors including developments in the Middle East, trade

negotiations with the United States, inflation and labor market

data. For now, they can afford to remain on hold as long as core

inflation stays around 2%," said Allan Small, senior investment

adviser of the Allan Small Financial Group with iA Private

Wealth.

* Among individual stocks, Air Canada ( ACDVF ) slipped 3%

after the airline said it had reached a tentative collective

agreement with the union representing about 11,000 technical

operations, airport, cargo, logistics and supply employees.