The CAC 40 increased by 0.3% to 8,348 on Friday, building on gains from the prior session as investors found encouragement in indications that diplomatic initiatives between the US and Iran continue to progress, notwithstanding recent tensions. Washington reaffirmed its dedication to a negotiated resolution, with continuous technical discussions focused on achieving a durable agreement by mid-August.

However, sentiment remained fragile amid concerns that disruptions to shipping through the Strait of Hormuz could threaten global energy supplies and trade flows. In June, domestic consumer inflation decreased to 1.8% year-on-year, down from a two-year peak of 2.4% in May. This aligns with preliminary estimates and supports the view that price pressures are subsiding.

Among individual stocks, gains were led by BNP Paribas at 0.4%, Sanofi at 0.4%, EssilorLuxottica at 0.7%, and Saint-Gobain at 1.1%. Despite Friday’s advance, the benchmark index continued to be on track for a weekly loss.