March 19 (Reuters) - Futures linked to Canada's main

stock exchange inched lower on Thursday as an escalation in the

Iran war following attacks on energy infrastructure across the

Middle East jolted investors, while a slump in metal prices

added further pressure.

June futures on the S&P/TSX index were down 0.6% at

06:03 a.m. ET (1003 GMT).

Oil prices climbed again on Thursday with benchmark Brent

hitting an over one-week high of more than $115 a barrel

after Iran attacked energy facilities across the Middle East

following Israel's strike on its South Pars gas field.

While the spike in oil prices has lifted Canadian energy

stocks up more than 34% this year, outperforming

peers, it has put global central banks in a bind over their

monetary policy outlook.

The U.S., Canadian and Japanese central banks, among others,

struck hawkish tones on Wednesday, with the Federal Reserve

projecting higher inflation and a single reduction in borrowing

costs this year.

Money markets pushed rate cut bets to April 2027, not fully

pricing in one from the Fed this year, according to data

compiled by LSEG.

"The Fed is choosing to look through the fog of conflict,

for now. A dual mandate Fed is not going to rock the interest

rate boat during a supply shock," said Jamie Cox, managing

partner for Harris Financial Group.

Meanwhile, Bank of Canada warned of rate hikes this year to

combat inflation, even as Canada remains better insulated from

energy-driven price pressures than peers, being a net oil

exporter.

The hawkish shiftin expectations strengthened the dollar,

dragging gold and silver to more than one-month lows and copper

to a three-month low.

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