As the threat of increased violence in the Middle East pushed oil-and-gas stocks higher today the TSE 300 made gains while most other markets slid.

Canada’s benchmark TSE 300 index was up 37.13 points to 7,888.60 on a 2% jump from the oil-and-gas sector and a 6.7% advance from stalwart Nortel Networks Corp.

Eight of the TSE’s 14 industry groups were ahead on the day, led by a 3.2% gain by the gold sector. Oil and gas stocks were 1.93% higher.

Crude oil futures for May delivery rose above the $27-U.S.-a-barrel mark for the first time since last September.

Precision Drilling was up $2.23 to $53.20; Talisman Energy climbed $1.10 to $67.55; Alberta Energy rose $1.66 to $71.17.

June Gold futures were up 40 cents at $303.70 U.S.

Barrick Gold rose $1.06 to $30.21.

Nortel rose 37 cents to $7.38, leading the industrial products sector to a 1.17% gain. Banc of America Securities upgraded Nortel (among other telecom stocks) from “market performer” to “buy”, citing a cyclical recovery in the sector.

BCE rose 10 cents to $28.08 – its first gain following 10 straight declines.

QLT shares took a big hit (down $3.09 to $23.96) after the U.S. Medicare and Medicaid insurance plans said they would not cover QLT’s Visudyne treatment for the occult form of age-related macular degeneration, the leading cause of blindness in the elderly.

In New York, the blue-chip Dow Jones industrial average lost 45.88 points to 10,358.06 as 20 of the Dow’s 30 components headed south. Exxon Mobil Corp., the world’s largest energy firm, inched higher at last check but was offset by declines from Wal-Mart Stores Inc., Walt Disney Corp. and SBC Communications Inc.

The tech-rich Nasdaq composite index bounced out of negative territory sitting 17.93 points higher to 1,863.28. The broad S&P 500 index dipped 1.65 points to 1,146.05.

Energy stocks sat in the spotlight Monday in the wake of heightened violence in Israel over the weekend and fears that the oil-rich Arab nations may begin to pull back on its supplies.

The price of crude oil rose 67 cents (U.S.) to $26.98. Europe’s benchmark Brent crude contract was not trading Monday as London markets were closed for Easter. U.S. crude now stands 50% over the mid-January level when it dipped below $18.

One Canadian dollar was worth 62.56 cents (U.S.).