CAC 40 Notably Lower As Middle East Tensions Weigh

(RTTNews) - France's equity benchmark CAC 40 remained in negative territory a little past noon on Tuesday as worries about Middle East tensions and the resultant rise in oil prices triggered inflation and interest rate concerns, prompting investors to refrain from picking up stocks.

The CAC 40 was down 58.67 points or 0.7% at 8,305.98 nearly half an hour past noon.

Oil prices rose as supply concerns returned to the fore after U.S. President Donald Trump reimposed a blockade on Iranian ships transiting the Strait of Hormuz and proposed to impose a 20% fee on all cargo passing through the vital waterway for guarding it.

In a post on X, Iranian foreign minister Seyed Abbas Araghci mocked Trump over his proposal and said Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. "20 percent is of course too much. We will be fair," Araghchi wrote.

Meanwhile, after the United States launched fresh strikes on Iran for the third consecutive night, Tehran responded with attacks targeting Bahrain, Jordan and two tankers associated with the United Arab Emirates.

Iran's Islamic Revolutionary Guard Corps (IRGC) claimed that it downed an American MQ-1 drone over the Strait of Hormuz.

Brent crude oil futures climbed to $87.38 a barrel before easing to $86.53 a barrel, still up nearly 4% from previous close.

Accor, LVMH, Kering and EssilorLuxottica shed 2.8%-3.1%. Hermes International and Safran lost 2.2% and 2%, respectively.

Euronext, Pernod Ricard, Dassault Systemes, L'Oreal, Thales, Sanofi, Societe Generale, Eurofins Scientific, Airbus, Bureau Veritas, Unibail Rodamco and Renault dropped down 1%-1.4%.

TotalEnergies climbed 1.7%, while ArcelorMittal and Legrand moved up 1.6% and 1.5%, respectively. STMicroelectronics gained nearly 1%.

Veolia Environment, Orange, Engie and Schneider Electric posted modest gains.