BRUSSELS (dpa-AFX) - French stocks fell sharply on Wednesday as renewed tensions in the Middle East and the resultant surge in oil prices and bond yields rendered the mood bearish. Political uncertainty in France added to the woes.
According to reports the US carried out fresh airstrikes on Iranian targets and revoked a sanctions waiver that had allowed Iran to sell oil globally.
U.S. President Donald Trump declared at the NATO Summit that the Iran ceasefire 'is over,' raising fears of a larger conflict with Iran and Strait of Hormuz disruptions.
Meanwhile, Tehran launched strikes on Bahrain and Kuwait, fueling concerns of a wider conflict in the Middle East region.
Brent crude futures shot up to nearly $79 a barrel, while WTI crude futures climbed up 6.5% to about $75 a barrel.
The benchmark CAC 40 was down 188.22 points or about 2.2% at 8,248.02 nearly half an hour past noon.
Societe Generale plunged nearly 6%. Saint-Gobain, EssilorLuxottica, Safran, Stellantis, Hermes International and Accor lost 4%-4.4%.
Kering shed about 3.6%. The luxury goods group announced that its Italian fashion house Gucci has entered into a 50 -year exclusive beauty license agreement with French cosmetics and beauty products giant L'Oreal Co. L'Oreal lost about 1.9%.
BNP Paribas, Dassault Systemes, Renault, Vinci, Publicis Groupe, Eiffage, ArcelorMittal, Capgemini and Credit Agricole lost 3%-4%.
LVMH, Eurofins Scientific, Airbus, Schneider Electric, Michelin, Bouygues, Thales, Unibail Rodamco, Thales, Pernod Ricard, Veolia Environment, Bureau Veritas, Air Liquide, Accor, Sanofi, AXA, Engie and Legrand were also notably lower.
TotalEnergies bucked the trend and gained about 2.3%, riding on higher oil prices.
In economic news, France's official reserve assets fell to €355.39 billion at the end of June 2026 from €381.30 billion in May, marking the lowest level since October 2025, primarily due to a sharp decline in gold reserves.
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