Futures linked to Canada's main stock index inched higher on

Tuesday, with investors hoping a resolution to the Middle East

conflict may yet be reached after reports that U.S.-Iran talks

could resume this weekend, even as Washington blockaded Iranian

ports.

June futures on the S&P/TSX index were up 0.05% at

5:50 a.m. ET (0959 GMT)

* Negotiating teams from the U.S. and Iran could return to

Islamabad as early as this weekend, sources said, after the

highest-level talks in decades between the two countries ended

without a breakthrough.

* Oil prices fell back below $100 a barrel

as supply concerns eased a little after the reports, though

broader uncertainty about shipping in the region continued as

the U.S. began its blockade of Iranian ports.

* Spot gold and silver rose 0.9% and 2.9%

respectively, lifted by a softer dollar.

* Meanwhile, Canadian Prime Minister Mark Carney secured a

parliamentary majority for his Liberal government on Monday, a

win that he has said will help him deal more effectively with

the trade war started by U.S. President Donald Trump.

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

closed Monday at a nearly six-week high, led by gains

in financial and technology shares.

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