May 7 (Reuters) - Canada's main stock index fell on Thursday as investors locked in some recent gains ahead of U.S. and Canadian jobs data, with energy shares among the biggest decliners.

The Toronto Stock Exchange's S&P/TSX composite index ended down 125.20 points, or 0.4%, at 33,856.62, after notching on Wednesday its highest closing level in more than two weeks.

"Everybody's got one eye on the war, one eye on corporate earnings and I guess if you had a third eye it would be on the jobs data released tomorrow," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.

"A lot of investors, perhaps, are just taking a little bit of profit ahead of the jobs number."

Both the U.S. and Canada are due to release monthly employment data on Friday. Economists have forecast Canada's economy adding 15,000 jobs in April and the unemployment rate remaining at 6.7%.

The United States and Iran are edging toward a temporary agreement to halt their war, sources and officials said, with Tehran reviewing a proposal that would stop the fighting but leave the most contentious issues unresolved.

The energy sector fell 1.4% as the price of oil settled 0.3% lower at $94.81 a barrel in volatile trading.

Canada's oil sands have significant expansion potential, but the basin's long-term growth outlook is dependent on the construction of a new crude export pipeline to the Pacific coast, the president of Canadian Natural Resources said.

Canadian Natural's shares ended 2.1% lower, while shares of Nutrien were down 7.5% even as the company reported a rise in first-quarter profit, benefiting from higher sales and prices across its fertilizer segments.

The materials group, which includes fertilizer companies and metal mining shares, fell 0.8%. Industrials lost 0.9%.

Among the bright spots was technology. It rose 1.8%, with shares of e-commerce company Shopify Inc clawing back some of this week's steep declines to end 5.8% higher.

(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara and Aurora Ellis)

By Fergal Smith