(Updates at market close)

* TSX ends down 0.7% at 33,638.87.

* Miners fall as gold prices decline

* Tech up after BlackBerry rises to one-year-high

* Energy rises 1.4% as oil settles 4.4% higher

By Tharuniyaa Lakshmi and Fergal Smith

May 4 (Reuters) - Canada's main stock fell on Monday as

the Iran war escalated, increasing investor concerns of a rise

in inflation that could lead to interest rate hikes this year.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 252.31 points, or 0.7%, at 33,638.87.

The price of oil settled 4.4% higher at $106.42 a barrel

as Iran stepped up attacks on the United Arab Emirates and ships

in the Gulf over the past 24 hours, the most serious escalation

since a U.S.-Iran ceasefire came into force last month.

Last Wednesday, the Bank of Canada said it might have to

respond with consecutive interest rate hikes if oil prices stay

high and begin pushing up inflation.

"There's growing concern that top-line inflation will

continue to inch higher, and that interest rates may move from a

pause to rising later in the year, which is unsettling for

rate-sensitive investors," said Shiraz Ahmed, founder at

Sartorial Wealth.

U.S. sectoral tariffs are another headwind for Canada's

economy. The Canadian government announced a C$1 billion

($734.65 million) loan program for industries that manufacture

and export products containing steel, aluminum or copper.

The materials group, which includes metal mining

shares, lost 1.6%. The price of gold was down 2.2% as

heightened U.S.-Iran tensions boosted demand for the safe-haven

U.S. dollar.

The consumer discretionary sector fell 2.1%, with shares of

clothing retailer Aritzia Inc ( ATZAF ) down 4.7%.

Industrials declined 1.3% and heavily weighted

financials ended 1% lower.

Two of the 10 major sectors ended higher, with energy

up 1.4% and technology adding 0.6%.

Shares of systems software firm BlackBerry ended up

3.5% after touching their highest intraday level since February

2025.