As discussions to end the Middle East war and resume regular commerce thru the Strait of Hormuz stalled, investors remained cautious. The CAC 40 saw little movement on Friday, trading at 8,653, and was on track to snap a three-week winning streak. Ongoing geopolitical tensions have sustained apprehensions regarding potential supply disruptions and inflationary pressures.

In this context, US President Donald Trump has reiterated demands for increased economic sanctions on Iran, while reports indicate that Tehran has taken on a more aggressive military stance. On the domestic front, France’s annual inflation rate increased to 2.1% in July 2026 from 1.8% in June, confirming preliminary estimates and reinforcing expectations that price pressures remain elevated.

Among individual stocks, L’Oréal experienced a decrease of 0.2%, Schneider Electric saw a decline of 0.5%, Engie faced a drop of 1.0%, and STMicroelectronics reported a decline of 1.5%. In contrast, defence and aerospace stocks exhibited superior performance, with Airbus increasing by 1.2%, Thales advancing by 1.6%, and Dassault Systèmes rising by 3.9%.