May 27 (Reuters) - Canada's resource-heavy stock index edged down on Wednesday, tracking lower oil prices, after Iranian state TV said it had seen a draft unofficial framework for a deal to end the conflict with the U.S. that could reopen the Strait of Hormuz.

At 10:11 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 0.4% at 34,507.71 points.

o Under the framework, Iran would restore commercial shipping through the Strait of Hormuz to pre-war levels within a month, while the U.S. would withdraw military forces from Iran's vicinity and lift a naval blockade, Iran's state TV reported.

o The news weighed on energy stocks, which fell 2.2%, leading losses on the TSX, tracking a 4% decline in oil prices. [O/R]

o Heavyweight mining stocks slipped 1.4% as gold prices fell on expectations of tighter monetary policy to curb inflation. [GOL/]

o Financials fell 0.2% despite positive earnings from three of six big Canadian lenders.

o "There may be a 'sell the news' phenomenon with respect to the banks. They do have good earnings, but their stock prices have gone way up in advance of these earnings. So is the market going to say, well, is this, may be as good as it gets?" said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.

o "We're seeing these bank stocks trading at high multiples. So I'm going to say I'm not wanting to buy more bank stocks because I think they're expensive here."

o BMO Financial, Bank of Nova Scotia and National Bank of Canada reported second-quarter profits on strong domestic and capital markets income, beating analysts' estimates.

o The three lenders are the first among Canadian banks to report for the February-April quarter, a period marked by uncertainty from U.S.-Canada trade tensions and broader economic challenges linked to the Middle East conflict and higher commodity prices.

o Investors and businesses will also keep an eye on the first round of formal negotiations of the U.S.-Mexico-Canada free trade deal that is expected to kick off in Mexico next week.

o The Trump administration's trade agency said on Wednesday that it will kick off first of three negotiating rounds with Mexico this week to revamp the North American trade agreement, but made no mention of any talks with Canada.

o "I think initially the conflict in the Middle East will be more important for the market's direction than the trade talks," Small added.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara)

By Tharuniyaa Lakshmi