(Updates at market close)

* TSX ends up 1% at 34,830.89

* Eclipses March 2 record closing high

* Materials group adds 4.4% as gold rises

* Energy sector loses 3.4% as oil declines 6.5%

By Tharuniyaa Lakshmi and Fergal Smith

May 25 (Reuters) - Canada's main stock index rose to a

record closing high on Monday as the prospect of a deal to end

the war in the Middle East boosted investor sentiment, with

technology and metal mining shares among the biggest gainers.

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

ended up 359.53 points, or 1%, at 34,830.89, eclipsing

the record closing high it posted on March 2.

* Iran's top negotiator and its foreign minister were in

Doha for talks with Qatar's prime minister on a potential deal

with the U.S. to end the three-month war, an official briefed on

the visit said.

* "There have been repeated false hopes of a resolution, but

this is how markets trade ... even a non-zero chance the

conflict ends is enough to push stocks higher and oil lower,

though we're not 100% convinced this is the real deal," said

Brian Madden, chief investment officer at First Avenue

Investment Counsel.

* The materials sector, which includes metal

mining shares, rose 4.4% as gold prices climbed on easing fears

of inflation and higher-for-longer interest rates.

* Shares of Hudbay Minerals ( HBM ) rose 8.9% and those of

First Quantum Minerals ( FQVLF ) were up 8.4%.

* The technology sector added 2.1% and

financials ended 0.9% higher.

* Canada's major banks, which include Royal Bank of Canada ( RY )

and Toronto-Dominion Bank ( MLWIQXX ), the two

highest-weighted stocks on the TSX, are due to report quarterly

results on Wednesday and Thursday, respectively.

* Energy was the only major sector to end lower,

losing 3.4%, as the price of oil declined 6.5%.

* Much of Canada's oil is produced in Alberta. Prime

Minister Mark Carney said the province's planned vote on

potentially breaking away from the rest of Canada, while not

binding, could become "a dangerous bluff."

* The TSX has advanced 9.8% since the start of the year

after advancing 28.2% in 2025.