CAC 40 Rises Sharply as Strait of Hormuz Reopens

The CAC 40 Index gained 160 points or 1.94 percent on Friday to close at 8423 points. Gains were led by STMicroelectronics (8.48%), Stellantis NV (6.65%) and Safran (5.90%).

The CAC 40 gained 2% to close at 8,425 on Friday after Iran declared the Strait of Hormuz open. Foreign Minister Abbas Araghchi confirmed full commercial access during the ceasefire. Oil prices plunged and bond yields fell, supporting financial stocks and the broader market. BNP Paribas was up 4.2%, Credit Agricole gained 2.8%, and Societe Generale added 4%. Luxury stocks advanced in the lower-risk environment, with LVMH advancing 3.2%, Hermes up 5.2%, and L'Oreal adding 2%. The industrial sector also posted gains, with Airbus up 4.5% and Safran advancing 5.7%. In contrast, TotalEnergies slumped 5.2% on falling oil prices.

The CAC 40 Index rose 0.3% to above 8,200 on Friday, reversing losses from the previous session and on track for a modest 0.3% gain for the week, its fourth consecutive weekly advance, as cautious optimism grew over potential progress in US–Iran negotiations. Sentiment was lifted after US President Trump continued to signal confidence that an agreement with Iran could be within reach, saying talks could resume over the weekend and that prospects “look very good”. He also repeated claims that Iran had accepted terms it had previously rejected without providing evidence. Among individual stocks, leading the gains are STMicroelectronics (3.29%), Stellantis NV (1.87%) and Edenred (1.78%). In contrast, top losers are ArcelorMittal (-1.02%), Bouygues (-0.84%) and Vinci (-0.74%).