By Sudeshna Ghoshal

July 8 (Reuters) - Canada's main stock index fell on Wednesday as renewed U.S.-Iran tensions rattled investors and drove oil prices higher, fueling inflation worries.

The Toronto Stock Exchange's S&P/TSX Composite index .GSPTSE shed 0.89% to 34,961.30 points at 9:50 a.m. ET.

• Oil prices hit a two-week high after U.S. President Donald Trump said the memorandum of understanding with Iran to end the conflict was "over", reviving concerns about potential disruptions to global energy supplies. O/R

• Brent crude futures LCOc1 gained 4.9% to $77.78 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 4.6% to $73.73.

• Canada's energy sector .SPTTEN rose 1.3%, helped by gains in Athabasca Oil ATH.TO, Cenovus Energy CVE.TO and CES Energy Solution CEU.TO.

• "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 materials subindex, which includes stocks of miners, fell 2.7%, tracking gold lower, as a rise in energy prices reignited fears of inflation and higher interest rates. Spot gold XAU= fell 0.9%, while silver XAG= shed 2.6%. GOL/

• Miner Aris ARIS.TO fell 4.8%, leading declines on the TSX.

• Investor focus now turns to minutes of the U.S. Federal Reserve's meeting, due at 2:00 p.m. ET, that is likely to offer cues on the monetary policy outlook.

• In company news, Air Canada AC.TO shares dipped 2.6% after it said Scandinavian airline SAS' top boss, Anko Van der Werff, would succeed Michael Rousseau as the CEO, ending months of leadership speculation.

• Ivanhoe Mines IVN.TO edged up 1.3% after the company said copper production at its flagship Kamoa-Kakula complex in the Democratic Republic of Congo is set to rise in the second half of 2026.

• Trilogy Metals TMQ.TO dipped 1.6% after the company reported a wider second-quarter loss.