The CAC 40 drops amid surging oil prices and tensions in the Middle East

A Session Driven by Oil and Middle Eastern Tensions

The spectacular rebound of Brent crude, which soared by more than 6% in twenty-four hours to climb back to around $108 per barrel, is dampening the mood in European markets this Thursday. The previous day, oil prices had briefly dipped below $100 on hopes of a ceasefire between the United States and Iran. The categorical denial from Tehran, new threats from Donald Trump, and Iran's response of « crushing » strikes against American and Israeli interests abruptly shifted investor sentiment.

The announcement by the American President of a planned withdrawal from Iran within two to three weeks, regardless of any diplomatic outcome, adds another layer of uncertainty. Fighting continues across the region, and the possibility of a broader escalation weighs on the Paris stock exchange as well as on all European markets. The SBF 120 is similarly down, falling 0.96% to 5,987.97 points. The Paris Stock Exchange remains significantly in the red, with 26 stocks declining compared to just 14 rising within the CAC 40 index.

TotalEnergies Leads: Oil Sector Capitalizes on Surging Crude Prices

In this context, TotalEnergies stands out at the top of the CAC 40 with a jump of 2.81% to 79.74 euros. The oil giant is benefiting from the surge in crude prices. The stock also sees a double boost from analysts: JP Morgan has raised its price target from 75 to 86 euros while maintaining its « overweight » recommendation, and Citi has increased its target from 75 to 90 euros, also with a purchase recommendation.

Behind TotalEnergies, Stellantis gains 1.60% to 6.42 euros, Thales progresses by 1.05% to 269.30 euros, and Engie advances 0.92% to 28.66 euros. Orange rounds out the top with a gain of 0.68% to 17.80 euros. The defensive profile of these stocks—energy, defense, telecommunications—reflects a cautionary market mode, where investors are turning to sectors perceived as less exposed to the risk of economic downturn.

Tech and industrial stocks hit hard

Conversely, STMicroelectronics experienced the largest drop in the CAC 40, declining by 3.96% to 28.75 euros, amidst a tech sector troubled by renewed risk aversion. Schneider Electric fell by 3.73% to 231 euros, despite Goldman Sachs maintaining a buy recommendation, although it reduced its price target from 322 to 302 euros.

Société Générale decreased by 3.46% to 63.68 euros, reflecting a banking sector vulnerable to geopolitical upheavals. Legrand dropped 3.04% to 134.15 euros. Although the electrical equipment specialist announced two new targeted acquisitions in the data center sector, bringing the total number of deals in 2026 to four, including Keydak in China and TES in Europe, Goldman Sachs lowered its price target for the stock from 144 to 138 euros. ArcelorMittal rounded off the losses, slipping 2.94% to 45.29 euros, as the steelmaker was mechanically weakened by rising energy costs driven by soaring oil prices.

Thursday's Paris session was marked by caution. The conflict in the Middle East and extreme volatility in oil prices dictated trading decisions, widening the gap between oil stocks and the rest of the market.