(Updates prices and details throughout)

* TSX down 0.3%

* Miners, tech stocks lead declines

* Shopify ( SHOP ) drops after $3 billion share buyback

announcement

By Tharuniyaa Lakshmi

June 3 (Reuters) - Canada's main stock index edged lower

on Wednesday after a flare-up in the Middle East conflict

dampened hopes for progress in efforts to end the months-long

war.

At 10:18 a.m. ET, the Toronto Stock Exchange's S&P/TSX

Composite Index was down 0.3% at 35,038.21 points.

* The U.S. military on Wednesday said it has thwarted

Iranian missile attacks on Bahrain, Kuwait and other regional

targets.

* "It's a tail risk and markets are pricing it as a tail

risk. If markets thought escalation was the highest probability

outcome, then they'd probably be a lot lower right now," said

Josh Sheluk, portfolio manager at Verecan Capital Management.

* Five of the 10 TSX sectors were in the red with technology

stocks and miners leading the declines, down 2.8% and 2.2%,

respectively.

* Energy stocks rose 1.7% after oil prices climbed

as talks between Tehran and Washington showed little signs of

progress.

* The index had hit a record high on Tuesday, when it

crossed the 35,000 mark for the first time as higher commodity

prices boosted resource sector shares.

* Shopify ( SHOP ) fell 2.7% after the Canadian e-commerce

firm said on Tuesday that its board had approved an additional

$3 billion share buyback program, bringing the total repurchase

authorization to $5 billion.

(Reporting by Tharuniyaa Lakshmi in Bengaluru)