CAC 40 Soars Driven by Relief in Hormuz and Decline in Brent

A European Session Marked by Geopolitical Relief

After more than three months of near-total blockade, the Strait of Hormuz, through which roughly one-fifth of the world’s oil and liquefied natural gas traditionally pass, is set to gradually reopen to commercial shipping. The formal signing of the agreement is expected at the end of the week in Geneva, coinciding with the opening of nuclear negotiations between the two capitals. This development immediately led to a drop of about 7% in Brent, bringing it below $83 a barrel, relieving stock markets under strain since the spring.
The movement is widespread across global markets: the DAX gains 1.19%, reaching 24,929 points during the session, the STOXX 600 rises by 0.67%, while the Nikkei 225 closed with a surge of 4.99% in Tokyo. In London, the FTSE 100, more exposed to oil majors, advances only by 0.19%. The SBF 120 follows the CAC with an increase of 1.02% to 6,385.60 points.
However, in the background, the World Bank report released this Monday reduced the 2026 global growth forecast to 2.5%, its slowest rate since the pandemic, reminding that the recovery from the energy shock will take time.

Industry, Automotive, and Aerospace Boost Paris Stock Index

In the rankings, Stellantis leads the way with a jump of 5.17% to 6.21 euros, closely followed by Saint-Gobain (+5.12% to 79.64 euros). The materials group benefits from the announcement of a binding agreement for the sale of its Dahl business in the Nordic countries to Finland's Kesko, for an enterprise value of 1.518 billion euros, as part of the « Lead & Grow » strategic plan.
Aerospace and defense also stand out. Safran gains 4.12% to 318.70 euros and Airbus moves up by 3.79% to 186.08 euros, boosted by Avincis's order for up to 15 H145 helicopters for its emergency medical rescue missions.
Renault completes the top five with a rise of 4.11% to 28.91 euros. The automaker announced the extension of Boreal SUV production at its Bursa plant in Turkey and, in collaboration with Thales, presented at the Eurosatory exhibition a prototype of a multi-role military vehicle named 4 Troop.

Energy and Defensive Stocks Buck the Trend

The downside of the oil market's easing is reflected in the decline of TotalEnergies, the worst performer on the index with a drop of 5.13% to 72.46 euros. The French energy giant is directly impacted by the prospect of renewed Iranian supply and the significant decline in Brent crude prices.
Defensive and yield stocks are also retreating as investors shift back into cyclicals. Orange fell 2.38% to 17.41 euros after the operator announced plans to issue a new hybrid bond paired with a buyback offer on two existing tranches. Carrefour lost 1.43% to 16.49 euros, Danone dropped 1.25% to 66.34 euros, and Air Liquide slid 0.90% to 166.78 euros, rounding out the main declines of a session that was otherwise largely bullish.