BRUSSELS (dpa-AFX) - France's equity benchmark CAC 40 fell over 2% Monday morning as stocks tumbled amid rising tensions in the Middle East after U.S. President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, warning of strikes on power plants.
Iran retaliated by saying that it would attack Israel's power plants and plants supplying U.S. bases in the Gulf if Trump carries out his threat to 'obliterate' Iran's power network.
The resultant reaction in the commodity markets lifted Brent crude futures to around $114 a barrel, raising concerns about inflation and possible monetary tightening by central banks.
The CAC 40, which fell to a nine-month low of 7,505.27, was down 147.81 points or 1.9% at 7,517.81 a few minutes before noon.
Except Kering (up 0.7%) and Euronext (up 0.4%), all other stocks from the CAC 40 index fell into negative territory.
STMicroElectronics dropped by about 5.1%. ArcelorMittal drifted down 4.5%. BNP Parinas, Safran, Stellantis, Thales and Saint-Gobain declined by 3%-4%.
Accor, AXA, Societe Generale, Unibail Rodamco, Veolia Environment, Legrand, Bouygues, Pernod Ricard, Bureau Veritas, Renault, Schneider Electric, Credit Agricole, Michelin, Vinci, L'Oreal, Engie, Carrefour, Safran and Thales lost 2%-3%.
Airbus, Sanofi, Hermes International, Publicis Groupe and EssilorLuxottica are also down sharply.
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