The Toronto Stock Exchange’s benchmark index finished higher at as energy stocks responded to a jump in oil prices.

The S&P/TSX composite index closed up 133.04 points, or 0.98%, at 13,743.88 — after falling almost 200 points on Wednesday.

The TSX energy group climbed 3.3% as Tensions in oil-rich countries such as Nigeria and Iran intensified helped push oil prices higher.

Crude for August delivery closed up US$5.6, or 4.1%, at US$141.65 a barrel on the New York Mercantile Exchange.

EnCana Corp. gained $2.47 to $83.65 and Canadian Natural Resources rose $3.39 to $89.15.

Reports of more missile tests by Iran boosted gold prices. Gold for August delivery surged US$13.40, or 0.9%, to US$942 an ounce on the Nymex.

The TSX gold subindex gained 2.7%. Goldcorp Inc. headed $1.54 higher to $46.34.

The base metals sector moved ahead 3.25% with Teck Cominco Ltd. up 90¢ to $42.40 and Fording Canadian Coal Trust up $4.81 to $80.77.

The TSX financial sector was off 0.72% as TD Bank fell $1.12 to $60.12 while CIBC declined $1.22 to $53.74.

Royal Bank fell 53¢ to $43.63 after a research note from Genuity Capital Markets said the bank could face another writedown of $900 million to $1.5 billion in the third quarter on widening credit spreads and deteriorating subprime investments.

The junior S&P/TSX Venture composite index ended its losing streak. The index rose 11.16 points, or 0.47%, to close at 2,383.65.

The Canadian dollar climbed 0.2¢ from Wednesday’s close to finish at US99.1¢.

In New York, U.S. stocks finished higher after a turbulent session. Financial shares down sharply earlier in the session following speeches from U.S. Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson about reforms they’d like to see in regulating the financial sector.

New York’s Dow Jones industrial average closed up 81.58 points to 11,229.02 following Wednesday’s 237-point loss, while the Nasdaq composite index was 22.96 points higher at 2,257.85.

The S&P 500 index was up 8.7 points to 1,253.39

U.S. stocks were boosted by news Dow Chemical will buy specialty chemicals maker Rohm and Haas in a deal valued at US$18.8 billion. The price is a 74% premium to Philadelphia-based Rohm and Haas’s price Thursday.

Financial stocks were under pressure on concerns that the sector may need additional capital to withstand the ongoing credit crisis. Shares of the top two U.S. mortgage finance companies Freddie Mac and Fannie Mae were the hardest hit by those fears. Freddie Mac dropped 22% to US$8 and Fannie Mae lost 13.8% to US$13.20.

Wall Street investment bank Lehman Brothers stock slid 12.4% to US$17.30.