CAC 40 Drops 1%+ as Rising Oil Prices Spark Inflation Worries

Cac Futures

French stocks fell on Thursday, snapping a three-day winning streak, as U.S. President Donald Trump vowed more strikes on Iran, raising the risk of more extensive damage to energy infrastructure throughout the Gulf, which in turn could trigger inflation and slowdown global economic growth. The U.S. President did not provide a timeline for concluding the conflict and presented no strategy for reopening the Strait of Hormuz, yet committed to additional strikes on energy facilities should Tehran reject a deal.

Brent crude futures surged to nearly $109 a barrel, reflecting an increase of approximately 7.7%, which has raised concerns regarding inflation and potential interest rate hikes. The benchmark CAC 40 experienced a decline of 89.32 points, reflecting a decrease of 1.1%, settling at 7,891.95 shortly after noon.

  • STMicroelectronics, Schneider Electric, and Societe Generale experienced declines of 3.6% to 3.7%.
  • Legrand, ArcelorMittal, BNP Paribas, Hermes International, Bouygues, Airbus, Saint Gobain, and EssilorLuxottica experienced declines in the range of 2% to 3%.
  • Safran, Credit Agricole, Eiffage, Vinci, Michelin, and Dassault Systemes experienced declines ranging from 1% to 1.7%.
  • LVMH, Bureau Veritas, Kering, L’Oréal, and Pernod Ricard also experienced a decline.
  • Among the gainers, TotalEnergies increased by 3%, buoyed by rising oil prices.
  • Stealantis experienced an increase of 1.8%, whereas Engie, Thales, Publicis Groupe, and Orange saw gains ranging from 0.7% to 1.1%.
  • Carrefour and Euronext recorded slight increases.

In economic news, France’s state budget deficit decreased to EUR 32.1 billion in January-February 2026, down from EUR 40.3 billion during the corresponding period last year, driven by increased revenues and reduced expenditures.