Updates at market close

By Rashika Singh and Fergal Smith

TORONTO, March 9 (Reuters) - Canada's main stock index recouped its earlier sharp declines on Monday, led by gains for technology shares, as hopes rose that the war in the Middle East could soon end after investors had worried the conflict would lead to another burst of inflation.

The S&P/TSX Composite Index .GSPTSE ended up 105.6 points, or 0.3%, at 33,189.32, after touching its lowest intraday level since February 6.

Wall Street stocks also clawed their way back from a steep selloff to close higher after U.S. President Donald Trump suggested that the U.S.-Israeli war on Iran could be close to ending.

The Trump administration is considering reducing oil sanctions on Russia to help cool a surge in global energy prices triggered by the U.S. and Israeli war on Iran, according to three sources familiar with the planning.

U.S. crude oil futures CLc1 fell 6% to $85.45 a barrel after earlier spiking to a near four-year high of $119.48.

"The key issue is how long the (oil) price shock lasts and how much damage it inflicts before easing as a prolonged spike in energy costs could revive inflation pressures and even raise the risk of stagflation," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

The technology sector .SPTTTK gained 2.4%, with shares of electronic equipment firm Celestica CLS.TO adding 7.1%.

The materials group .GSPTTMT, which includes metal mining shares, was up 0.7% as copper HGc1 prices climbed, while energy ended 0.4% higher.

Still, five of the 10 major sectors ended lower, including heavily weighted financials, which lost 0.6%.