Updates prices and details throughout

By Tharuniyaa Lakshmi

May 11 (Reuters) - Canada's main stock index rose to near three-week highs on Monday as Barrick Mining jumped after stronger-than-expected results and other commodity-linked stocks climbed while investors weighed the impact of the Middle East conflict.

At 10:47 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.3% at 34,205.24 points — its highest since April 21.

Materials .GSPTTMT, gold .SPTTGD and energy stocks .SPTTEN gained as precious metals and oil prices rose. GOL O/R

President Donald Trump's swift rejection of Iran's response to a U.S. peace proposal fueled concerns that the 10-week-old conflict will drag on and keep shipping through the Strait of Hormuz paralyzed, pushing up oil prices. O/R

"The longer strikes continue without a peace agreement, the more damaging it becomes for equities due to mounting inflationary pressures," said Michael Dehal, senior portfolio manager, Dehal Investment Partners at Raymond James.

The benchmark index was trading just below its March 2 peak, as lingering geopolitical uncertainty and concerns about a potential spike in inflation tempered gains.

The Bank of Canada kept its key interest rate unchanged last month but Governor Tiff Macklem said if oil prices remained high and started to push up inflation, it might have to respond with consecutive rate hikes.

Traders expect at least one 25 basis point interest rate hike by the end of 2026, according to LSEG, and see nearly 38% chance of a second rate hike this year.

Barrick Mining ABX.TO jumped 7.2% and was among the top gainers of the TSX index after the miner beat estimates for first-quarter profit helped by record gold prices.

Cronos CRON.TO climbed 7.2% after the cannabis producer's first-quarter net revenue soared 40%, helped by sales in Israel and other countries, which do not carry excise taxes.