CAC 40 slides as US‑Iran tensions flare and ECB decision looms

U.S. forces resumed aerial strikes against Iranian targets near the Strait of Hormuz, prompting Iran to hit sites in Kuwait, Bahrain and Jordan. The escalation lifted crude oil prices toward $95 a barrel and added fresh geopolitical risk to European markets.

In response, the Paris‑based CAC 40 opened lower and fell roughly 0.6% at the start of trading, later slipping about 0.37% by mid‑session. Investors weighed the heightened Middle‑East tension against expectations of a European Central Bank rate hike later in the day, while tech stocks remained under pressure. Company‑specific news included Renault’s €750 million green bond issuance and a Thales radar contract for the German army, but the broader market sentiment was dominated by the geopolitical shock and the pending ECB policy decision.