Toronto stocks closed lower Tuesday as signs of waning tensions in the Middle East created weakness in oil and gold stocks.

The Toronto Stock Exchange 300 composite index fell 25.44 points to 7,722.11.

Overall, eight of the TSE’s 14 sub-indices closed lower, led down by a 2% slide in oil stocks and a 2.4% dip in golds. The good news was in utilities as that sector jumped 2.7%

Oil prices relaxed after other country joined Iraq in cutting oil exports. Suncor Energy closed down $2.15 at $54.55, while Petro-Canada slipped 91¢ to $40.60.

Among gold stocks, Placer Dome slid 57¢ to $17.84 and Barrick lost 55¢ to $27.55.

Market momentum was negative as declines outpaced advances 660 to 434. Volume was 164.1 million shares.

The tech-heavy industrial products group was flat overall. Bombardier fell 54¢ to $14.45, while Dofasco climbed $1.50 to $30 after saying it expects to make a profit in its first quarter.

Nortel Networks warned Tuesday that its first-quarter revenues will be lower than expected due to the continuing decline in customer spending.

The company said first-quarter revenues will be about US$2.9 billion US – 16% below fourth-quarter revenues. Nortel had earlier forecast that its revenues would be down by 10%. Investors shrugged off the news; Nortel shares ended the day up 15 cents to $5.80.

Research in Motion reported a deeper loss and lower revenues for the fourth quarter on Tuesday. The stock closed down 66¢to $37.20.

BCE bounced back today, recovering $1.24 to $26.70.

Venture capital stocks also gave up ground Tuesday. The S&P/CDNX Composite Index closed down 6.50 points at 1,162.11. Trading was heavy on a volume of 43.2 million shares.

In New York, the major averages ended lower Tuesday as continuing violence in the Middle East, concerns about the stability of oil prices and profit worries flushed buyers from the market.

The Dow Jones industrial average finished with a loss of 40.41 points to 10,208.67. The Nasdaq composite index slid 43.30 points, or 2.4%, to 1,742.57. TheS&P 500 shed 7.49 points to 1,117.80.

The tech decline was led by Cisco Systems after RBC Capital Markets lowered its quarterly forecast for the network equipment maker, citing a continued slump in capital spending on information technology. Cisco lost US$1.32 to US$14.86.

The Canadian dollar slipped US0.08¢ to US62.63¢.