* TSX down 0.3%

* Energy shares lead decline as uncertain prospects of

Iran talks weigh

* Canadian retail sales rise 0.7% in Feb from Jan

(Updates after markets open)

By Purvi Agarwal

April 24 (Reuters) - Canada's main stock index inched

lower on Friday and was set for a weekly decline, as heavyweight

energy stocks fell amid uncertain prospects of a resumption of

U.S.-Iran negotiations.

At 10:01 a.m. ET (1401 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 0.3% at 33,826.92.

The index is set for its first weekly decline in four, as

little progress on the prospects of peace in the Middle East

dampened investor sentiment.

Iran's foreign minister Abbas Araqchi was expected in

Islamabad on Friday, although there was no indication that

negotiations would immediately resume.

Oil prices fell following the news of the expected visit,

but held above $100 a barrel. The TSX energy sector

fell 1.3%, after four sessions of gains.

Miners gained 0.1%, tracking gold and silver

prices. But a decline in copper prices kept a lid on the

advance.

Six out of the 11 TSX sectors were flat-to-lower. Healthcare

stocks were the biggest percentage gainers, up 2%.

Angelo Kourkafas, senior global investment strategist at

Edward Jones, said that sensitivity of the TSX to oil prices had

reduced as investors expected corporate profits to rise and

since the economy appeared to be resilient.

A majority of economists polled by Reuters expect the Bank

of Canada to remain on hold through the year, in contrast to

LSEG data that shows markets pricing in a rate hike by end-2026.

The BoC might have to reassess its plans to hold if high

energy prices persist into the second and third quarters,

Kourkafas said.

Canadian retail sales rose 0.7% in February, slightly below

estimates of 0.9%, according to economists polled by Reuters.

Among stocks, Sun Life Financial ( SLF ) gained 1.7% after

the National Bank of Canada upgraded the stock to "outperform."