France’s equity benchmark CAC 40 experienced a decline of more than 2% on Monday morning, as stocks plummeted in response to escalating tensions in the Middle East. This downturn followed U.S. President Donald Trump’s issuance of a 48-hour ultimatum to Iran regarding the reopening of the Strait of Hormuz, accompanied by warnings of potential strikes on power plants. Iran responded by stating that it would target Israel’s power facilities and those supplying U.S. bases in the Gulf should Trump follow through on his threat to ‘obliterate’ Iran’s power infrastructure.

The resultant reaction in the commodity markets elevated Brent crude futures to approximately $114 a barrel, heightening apprehensions regarding inflation and the potential for monetary tightening by central banks. The CAC 40, having declined to a nine-month low of 7,505.27, was down 147.81 points or 1.9% at 7,517.81 shortly before noon. With the exception of Kering, which saw an increase of 0.7%, and Euronext, which rose by 0.4%, all other constituents of the CAC 40 index experienced declines.

• STMicroElectronics experienced a decline of approximately 5.1%.
• ArcelorMittal experienced a decline of 4.5%.
• BNP Paribas, Safran, Stellantis, Thales, and Saint-Gobain experienced a decline in their stock values, ranging from 3% to 4%.
• Airbus, Sanofi, Hermes International, Publicis Groupe, and EssilorLuxottica are experiencing significant declines.

Accor, AXA, Societe Generale, Unibail Rodamco, Veolia Environment, Legrand, Bouygues, Pernod Ricard, Bureau Veritas, Renault, Schneider Electric, Credit Agricole, Michelin, Vinci, L’Oreal, Engie, Carrefour, Safran, and Thales experienced declines in the range of 2% to 3%.