(Updates after markets open)

* TSX up more than 1%, set for fourth week of gains

* Miners lead broad-based gains

* Energy stocks set for biggest daily drop in a year

By Tharuniyaa Lakshmi

April 17 (Reuters) - Canada's main stock index rose

sharply on Friday after Iran's move to open the Strait of Hormuz

raised expectations that the conflict would end soon and

normalize oil and gas supplies, lifting investor sentiment

globally.

At 10:48 a.m. ET, the Toronto Stock Exchange's S&P/TSX

Composite Index was up 1.1% at 34,427.11 points, its

highest since its March 2 peak, putting it firmly on track for

its fourth straight week of gains.

Wall Street's key indexes also jumped, with the benchmark

S&P 500 trading at record highs.

Iran's Foreign Minister Abbas Araqchi said in a post on X that

the Strait of Hormuz was open following a ceasefire accord

agreed in Lebanon, while U.S. President Donald Trump said a

peace deal with Tehran would come "soon," although the timing

remained unclear.

Nine of 11 TSX sectors were trading higher following the

news.

The materials subindex, which includes Canadian

metal miners, led gains, advancing 3.65% as gold and silver

climbed more than 1% and 4%, respectively.

Miners including Avino Silver and Gold Mines ( ASM ) and

NovaGold Resources ( NG ) were among the top gainers.

The heavyweight financials index was up 1.5%,

while tech shares rose 2.5%.

"As soon as the headline came, the algorithms kicked in, and

all of a sudden, it's a sell-the-oil-and-buy-everything-else

phenomenon," said Allan Small, senior investment advisor of the

Allan Small Financial Group with iA Private Wealth.

TSX energy shares slumped 6.7% to their lowest

levels since March 10, set for their biggest one-day drop in

over a year, as oil prices plunged more than 11% following

Iran's announcement.

Vermilion Energy ( VET ), Canadian Natural Resources ( CNQ )

and Baytex Energy ( BTE ) fell between 11.4% and 8.8%.

Meanwhile, corporate earnings in the U.S. and Canada were

also in focus as investors assessed the war's impact on

businesses.