* TSX ends up 0.9% at 34,346.29

* Posts weekly gain of 1.9%

* Materials group adds 2.2% as gold rises

* Energy falls 4.8% as oil settles 11.45% lower

(Updates at market close)

By Tharuniyaa Lakshmi and Fergal Smith

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

rose on Friday as investors globally cheered Iran's move to open

the Strait of Hormuz, with gains for metal mining and

consumer-related shares offsetting declines for energy.

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

ended up 294.06 points, or 0.9%, at 34,346.29, marking

the highest closing level since March 2 when the index posted a

record high.

For the week, the index added 1.9%. It was the fourth

straight weekly gain.

Iranian Foreign Minister Abbas Araqchi said the Strait of

Hormuz was open following a ceasefire agreement in Lebanon,

while U.S. President Donald Trump said talks could take place

this weekend and he believed a deal to end the Iran war would

come "soon".

"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.

Domestic data was downbeat. Housing starts posted a surprise

decline in March, falling 6% from the previous month.

The materials group, which includes metal mining

shares, rose 2.2% as declines for the U.S. dollar boosted

the price of gold.

Consumer discretionary was up 2.8%, with shares

of auto parts supplier Magna International Inc ( MGA ) jumping

6.8%.

Air Canada ( ACDVF ) said it will trim daily flights to New

York from 38 to 34, starting in June, as higher fuel prices lead

North American carriers to cut capacity on less profitable

routes. The airline's shares were up 1.5%.

Technology added 1.9% and heavily weighted

financials ended 1.5% higher.

Just two of 10 major sectors ended lower, including energy

. It lost 4.8% as the price of oil settled

11.45% lower at $83.85 a barrel.