* TSX up 2% Trump postpones strikes on Iranian energy

facilities Materials sector leads gains, up 4.3%

(Updates after markets open)

By Rashika Singh

March 23 (Reuters) - Canada's main stock index gained on

Monday after U.S. President Donald Trump said he would hold off

on military strikes against Iranian energy facilities, easing

fears of a major escalation in the Middle East war, now in its

fourth week.

At 10:52 a.m. ET, the Toronto Stock Exchange's S&P/TSX

composite index was up 2% at 31,943.43.

Precious metals edged up and oil prices fell, pointing to a

modest pickup in risk sentiment across the market. However,

analysts remained cautious amid conflicting signals from the

U.S., Israel and Iran.

"The broader market remains highly sensitive to shifting

headlines around the Middle East conflict," said Allan Small,

senior investment advisor at Allan Small Financial Group with iA

Private Wealth. "Nobody knows what's going on as mixed signals

from Washington and Tehran continue to whipsaw sentiment," he

said.

Iran's Fars News Agency, citing a source, said there was no

direct or indirect communication with the U.S. Meanwhile, Israel

said its military was carrying out strikes on Iran.

Eight of 11 major sectors on the TSX were trading in

positive territory, with materials leading gains.

The sector rose 4.3%, lifted by a rebound in gold and silver

as fears of runaway inflation tied to the conflict eased

somewhat.

Technology stocks rose 4%, tracking a rebound in

Wall Street peers.

Energy shares fell around 2% after crude prices

slumped nearly 12%, a notable drag for the Canadian market,

given the sector's heavy index weightage and the country's

reliance on energy exports.

Amid volatility in oil prices due to Middle East tensions,

the TSX recorded its third straight weekly loss last week and is

off about 7.6% from before the start of the war.

Investors are also keeping an eye on transportation

headlines after an Air Canada Express CRJ-900 struck a

Port Authority emergency vehicle on the LaGuardia runway late

Sunday, leaving the pilot and co-pilot dead and injuring more

than a dozen others, U.S. authorities said. However, the

company's shares were up 3.8%, as easing oil prices helped lift

travel-related stocks broadly across markets.