April 2 (Reuters) - Canadian index futures declined on Thursday as hopes

of a swift end to the Middle East war faded after U.S. President Donald Trump

signaled an escalation in attacks on Iran.

June futures on the S&P/TSX composite index were down 0.9% as of

04:59 a.m. ET (0859 GMT).

* Uncertainty surrounding the conflict's timeline and objectives jolted

global markets in March, pressuring equities while driving Brent crude to its

best monthly showing on record.

* Crude was last trading near $107 a barrel, keeping energy stocks

in spotlight.

* Gold fell from two-week highs as Trump flagged continued U.S. military

action in Iran, pushing oil prices higher and dampening hopes of rate cuts by

U.S. Federal Reserve.

* Bank of Canada is expected keep interest rates unchanged this month and

traders are pricing in two quarter-point hikes by the end of the year, according

to data compiled by LSEG.

* The central bank's governing council has agreed it will have to rely on

its own judgment more than usual on rate decisions, given heightened global

uncertainty, according to minutes released on Wednesday.

* Canada's benchmark stock index rose to a three-week high on

Wednesday after Trump signaled a resolution to the Middle East conflict could be

within reach, before backtracking.

* The index was on track to end the week higher. It logged a 4.6% drop in

March, its steepest monthly fall since May 2023.

* Volumes were thinner than usual as markets will be closed on Friday on

account of the Good Friday holiday.

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