The CAC 40 declined by 0.7% to approximately 8,379 on Wednesday, marking a third consecutive session of losses as renewed tensions in the Middle East negatively impacted market sentiment. The US intensified pressure on Iran by launching fresh airstrikes and revoking a sanctions waiver that had permitted Tehran to export oil to global markets. The recent developments have driven oil prices upward, rekindling concerns about inflation and obscuring the forecast for interest rates.

Markets currently indicate an expectation of approximately 32 basis points for an ECB rate hike, an increase from the 25 basis points observed the previous day. Luxury stocks exhibited notable weakness, as LVMH experienced a decline of 0.9%, Hermes saw a decrease of 1.7%, and Kering registered a drop of 1.3%.

Financial shares experienced downward pressure, with BNP Paribas declining by 2.1%, Credit Agricole by 1.6%, and Societe Generale by 2.4%. In contrast, energy stocks demonstrated superior performance, with TotalEnergies experiencing a 1.3% increase as rising oil prices provided a significant boost to the sector.