Cac 40: Friday Euphoria on Iran

The CAC 40 ended sharply lower on Monday, April 20, as optimism about a resolution to the Middle East conflict was strongly deflated.

The Paris Stock Exchange started the week with a pronounced decline. The CAC 40 fell by 1.12% to 8,331.05 points at the close on Monday, April 20.

After a hopeful Friday, investors were disappointed. While the markets were initially boosted by the announcement of the reopening of the Strait of Hormuz on Friday, the optimism was short-lived.

“The situation turned around in a few hours: while Donald Trump announced the reopening of the Strait of Hormuz and the resumption of maritime traffic at the end of last week, Iran, which had initially declared the reopening of the strait for navigation, changed its decision over the weekend after Trump clarified that the American blockade of Iran would remain in effect until the conflict is resolved,” explained Alexandre Baradez of IG France.

Totalenergies stock rose, but the situation deteriorated further as a US Navy destroyer opened fire on an Iranian cargo ship in the Gulf of Oman after it attempted to break through an American naval blockade.

The ceasefire between the United States and Iran is set to expire in two days, with representatives from both sides supposed to meet in Islamabad for new negotiations on Monday evening. However, Tehran has stated that this meeting is not on the agenda.

“It is not certain that a second round of negotiations will take place this week. This diplomatic U-turn is partly due to the power vacuum within the Iranian government. With many key figures in leadership eliminated, it is unclear if a single figure has the authority and capacity to reach an agreement with the United States that all parties would respect,” observed Lizzy Galbraith of Aberdeen Investments.

Oil prices rose following these developments. The June contract for Brent North Sea crude rose by 5.41% to $95.24 per barrel, while the WTI crude contract in New York advanced by 5% to $86.67 per barrel.

On the CAC 40, Totalenergies gained 1.8% due to the rise in oil prices. Off the CAC 40, Air France-KLM lost 2.6% due to the surge in oil prices, leading to higher fuel costs.

In currency exchange, the euro rose 0.2% against the dollar to 1.1784 dollars.

Julien Marion – ©2026 BFM Bourse