Updates prices and details throughout

By Tharuniyaa Lakshmi

May 6 (Reuters) - Canada's main stock index edged higher on Wednesday, lifted by mining shares, as investor optimism rose over reports of the United States and Iran nearing an agreement on a one‑page memorandum to end their war.

At 10:38 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 1.3% at 34,005.40 points.

An Iranian foreign ministry spokesperson, cited by Iran's ISNA news agency, said the country would soon convey its response via Pakistan, which has served as the main conduit for messages between the sides after hosting their only peace talks.

Heavy-weight mining stocks .GSPTTMT led gains, up 6.2% posting its biggest one day gain since April 2025, as gold prices rose more than 3% following the news. GOL/

SSR Mining SSRM.TO, Americas Gold and Silver USA.TO and IAMGOLD IMG.TO were up 15.8%-17% each and were among the top gainers on the index.

Capping gains, the energy index .SPTTEN fell 4.3%, as oil prices slumped to two-week lows on expectations bottled-up supply from the key Middle East producing region could resume flowing. O/R

Shares of oil and gas producers fell, with Vermilion Energy VET.TO slumping 10.4% after its first‑quarter results and Cenovus Energy CVE.TO declining 4.2% despite an 83% surge in first-quarter profit, tracking a slide in oil prices.

"When the war started in the Middle East, it benefited the TSX because of oil prices going higher. But today, we have the opposite effect," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

"The TSX will stay higher, but the gains may be capped because of oil stocks."

The benchmark index was nearly 2% below its March 2 peak, as lingering geopolitical uncertainty and volatility in energy and materials stocks since the war erupted tempered gains, despite a 9% rebound from its post‑peak low.

Eight of 11 TSX sectors were trading in the green.

On the earnings front, Loblaw L.TO fell 2.5% after the retailer missed Wall Street estimates for first-quarter revenue as consumers tightened spending amid rising macroeconomic uncertainty.