CAC 40 Extends Losses on US-Iran Tensions

2026-05-12 15:53 By Isabela Couto 1 min. read

The CAC 40 fell 0.9% to close at 7,980 on Tuesday, marking a fourth consecutive session of losses as fading hopes for a US-Iran peace agreement continued to weigh on sentiment.

US President Donald Trump said a potential ceasefire with Iran was “on life support” after Tehran rejected a US-backed proposal aimed at ending the conflict.

The renewed geopolitical uncertainty pushed oil prices higher, reviving concerns over inflation and slowing economic growth.

Investors also reassessed the outlook for monetary policy in Europe, with markets now pricing in two additional 25 basis-point rate hikes from the ECB by September.

Financial stocks led the losses, with BNP Paribas down 2.7% and Société Générale falling 3.8%.

Industrials also traded lower, with Airbus down 1.7% and Safran losing 1.3%.

On the upside, TotalEnergies gained 1.8% as higher crude prices supported energy stocks, while most luxury shares advanced, including L’Oréal (+1.5%).



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