Geopolitical Tensions in Strait of Hormuz Drag CAC 40 Lower

The CAC 40 retreated on Friday, closing at 8,151.22 after shedding 76.10 points, or 0.91%, as investors reacted to heightened instability in the Middle East. The downturn was primarily driven by the effective closure of the Strait of Hormuz, a critical artery for global oil shipments. Market anxiety intensified following statements from U.S. President Donald Trump, who directed the Navy to use lethal force against vessels deploying mines in the strait. This military posture, combined with reports that Iranian Parliament Speaker Mohammad Bagher Ghalibaf has resigned from U.S. negotiations, suggests a shift toward hardline stances and a diminished path to diplomacy. The surge in oil prices resulting from the blockade has raised systemic concerns regarding renewed inflation and the potential for central banks to implement further monetary tightening. This macro pressure weighed heavily on industrial and luxury sectors, which are sensitive to global trade stability and consumer spending. Notable losses were seen in EssilorLuxottica (-3.4%), ArcelorMittal (-3.3%), and the automotive sector, with Renault and Stellantis dropping 3.1% and 3% respectively. Even Safran fell 2.7% despite reporting strong first-quarter revenue and an upbeat full-year outlook. Conversely, energy giant TotalEnergies gained 1.5%, benefiting from the rise in crude prices.