CAC 40 Dips Mid-Session, 32 Stocks in the Red Following Naval Blockade Against Iran

A Session Under High Geopolitical Tension

The beginning of the week is dominated by the escalation between Washington and Tehran. After more than twenty hours of failed negotiations in Islamabad, the United States initiated a naval blockade targeting ships entering and leaving Iranian ports. Donald Trump mentioned a blocking process around the Strait of Hormuz, a vital artery for global oil trade, while assuring that non-Iranian related vessels would retain their freedom of passage. On its part, Tehran denounced an « act of piracy » and maintained a stance of total firmness.

This explosive context leaves its mark on the entire Paris stock market. The split is clear: 32 CAC 40 stocks are down, compared to only 7 gains and one stable. The SBF 120 follows the same path, declining by 0.86% to 6,198.91 points. Nervousness is palpable throughout Europe, even though the extent of the decline remains contained for the moment.

Energy and Defense Hold Steady, Driven by Geopolitical Context

TotalEnergies records the second-largest increase on the CAC 40 at mid-session, rising 1.49% to 79.78 euros. The oil giant benefits mechanically from the rising tensions in the Middle East, as the potential for disruptions in crude supply supports the energy sector. Engie also progresses, more modestly, by 0.45% to 29.26 euros.

The defense sector is also standing out. Thales advances 1.12% to 262.10 euros, as military rhetoric between the two powers fuels interest in security and defense-related stocks.

Leading the pack, Dassault Systèmes gains 1.69% to 17.10 euros. The industrial software specialist benefits from a buying movement without an identified catalyst this morning. Carrefour, a naturally defensive stock, adds 1.44% to 16.60 euros, in a classic retreat to stocks considered less exposed to economic shocks.

Automotive, Luxury, and Banking: The Most Exposed Sectors Suffer

On the downside, the automotive sector is experiencing the most significant declines. Stellantis drops 2.64% to 6.71 euros, making it the worst performer on the CAC 40. TD Cowen lowered its price target on the stock this Monday, from 7.81 to 7.68 euros, while maintaining a « hold » rating. Renault falls by 1.90% to 30.39 euros, with both automakers being affected by fears of a prolonged disruption in supply chains and global trade.

Safran records a sharp decline of 2.33% to 306 euros. Barclays has reduced its price target on the aerospace equipment manufacturer from 340 to 330 euros, while keeping an « overweight » rating. The aerospace sector, sensitive to tensions around jet fuel and air traffic in the Middle East, is feeling the current pressure.

Kering drops 2.12% to 270.60 euros. Morgan Stanley downgraded its recommendation on the luxury group from « overweight » to « equal weight, » while lowering its price target from 330 to 320 euros. The luxury sector, highly dependent on the fluidity of international exchanges, is affected by rising uncertainties.

The financials are not spared. Société Générale falls by 2.27% to 69.78 euros, in a wave of mistrust affecting the entire European banking sector, which is traditionally weakened by spikes in geopolitical risk.