June 16 (Reuters) - Canada's main stock index rose to a record high on Tuesday, led by gains for financial and metal mining shares, as a drop in oil prices reduced concerns about the inflation outlook.

The Toronto Stock Exchange's S&P/TSX Composite index ended up 113.94 points, or 0.3%, at 35,389.58, eclipsing the record closing high it posted on Monday.

o Details began to emerge of the interim deal reached to end the Iran war, with U.S. President Donald Trump saying it will rule out a nuclear weapon for Iran and a U.S. official saying it allows Iran to sell oil upon signing.

o "The Middle East conflict deal is definitely supporting markets, and the rally is based on hopes that a final signing will happen," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

o "The price of oil is falling quite rapidly, and if there is some sort of deal, I anticipate it going back to where it was before the conflict," Small said.

o U.S. crude oil futures settled 5.8% lower at $76.05 a barrel on optimism that the deal would allow oil to flow through the Strait of Hormuz.

o The materials index, which includes metal mining shares, rose 2.2% to a two-week high.

o Shares of SSR Mining Inc jumped 10.2% after the company announced that its Board of Directors has approved an additional $500 million for share repurchases and the reinstatement of a regular quarterly dividend.

o The price of gold increased 0.6% as easing inflation fears reduced expectations for Federal Reserve interest rate hikes.

o The U.S. central bank is expected to leave its policy rate in the 3.50%-3.75% range on Wednesday.

o Heavily weighted financials rose 0.8%.

o Energy and technology were among the sectors that lost ground, losing 2% and 1.3% respectively.

o Shares of Gildan Activewear tumbled 18.7% after Jehoshaphat Research said it is shorting the apparel maker's stock, contributing to a 2.8% decline in the consumer discretionary sector.

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

By Tharuniyaa Lakshmi and Fergal Smith