The CAC 40 declined by 1% to 8,123 on Friday, continuing the downward trend from the prior session as escalating tensions between the US and Iran unsettled investor sentiment. Three US Navy destroyers reportedly intercepted Iranian attacks in the Strait of Hormuz and executed retaliatory strikes, heightening concerns over a potential escalation of regional conflict and contributing to an increase in oil prices.

European markets continued to exhibit sensitivity to events in the Middle East, given the region’s dependence on imported energy. There are apprehensions that escalating oil prices may exacerbate inflationary pressures and hinder economic growth.

• Sentiment experienced additional pressure following Trump’s warning that the EU might encounter considerably elevated tariffs if a trade agreement is not reached by July 4.
• Most sectors experienced a decline, with financial stocks such as BNP Paribas down by 1.8%, AXA decreasing by 1.5%, Crédit Agricole falling by 1.4%, and Société Générale dropping by 1.7%, marking them as significant decliners.
• In light of the recent pullback, the CAC 40 continues to be positioned for modest gains.