* TSX ends down 1% at 34,935.80

* Posts biggest decline since June 5

* Materials group falls 3.2% as gold slides

* Energy stocks gain as oil settles 4.4% higher

(Updates at market close)

By Sudeshna Ghoshal and Fergal Smith

July 8 (Reuters) - Canada's main stock index fell on

Wednesday by the most in one month, paced by declines for

financial and metal mining shares, as renewed U.S.-Iran tensions

rattled investors.

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

ended down 336.79 points, or 1%, at 34,935.80, marking

its biggest decline since June 5 and its lowest closing level

since June 30.

* U.S. President Donald Trump said an interim agreement to

end the war with Iran was "over" and that the United States was

likely to launch new strikes on Wednesday night following

Iranian attacks on U.S. bases in the Gulf.

* "We've said throughout that these ceasefires and truces

are quite fragile," said Brian Madden, chief investment officer

at First Avenue Investment Counsel.

* "Not surprisingly, oil prices are bouncing after having

pulled back in the last few months. So that's creating kind of a

risk-off impulse across all global equity markets, including

Canada."

* The price of oil settled 4.4% higher at $73.52 a

barrel as investors worried that the hostilities could lead Iran

to close the Strait of Hormuz to ship traffic again.

* The materials sector, which includes metal mining shares,

fell 3.2%. The price of gold was down 0.7% as the jump in

oil stoked worries about the inflation outlook and the potential

for higher interest rates.

* Concern about high inflation mounted at the U.S. Federal

Reserve's meeting last month as officials followed Chairman

Kevin Warsh's lead to a more stripped-down policy statement even

amid concerns that price increases were broadening and might

require interest rate hikes.

* Heavily weighted financials lost 1.9% and technology ended

0.7% lower.

* Air Canada ( ACDVF ) named the French-speaking head of

Scandinavian airline SAS, Anko van der Werff, as CEO, filling

the top job at the largest carrier of the bilingual nation where

language had become a critical part of the succession plan. The

company's shares were down 2.1%.

* Just three of the 10 major sectors ended higher, including

energy. It added 3.8%, helped by gains for Cenovus

Energy Incorporation ( CVE ) and Canadian Natural Resources Ltd ( CNQ )

.