Cac 40: Reassured by the announcement of a two

Paris Stock Market Soars After US-Iran Ceasefire

The Paris stock market saw its biggest jump in over four years as a ceasefire between the US and Iran brought relief. However, the path to a lasting resolution remains uncertain.

The Paris Stock Exchange saw its biggest increase in over four years. Its flagship index, the CAC 40, rose by 4.49% to 8,263.87 points by the close of trading on Wednesday, April 8th.

Investors enthusiastically welcomed the ceasefire announced by Donald Trump, causing the CAC 40 to record its highest increase since March 9, 2022 (+7.13%). At that time, the market was hopeful for peace in Ukraine.

Wall Street also reacted positively to the news of a two-week ceasefire between the US and Iran in exchange for the reopening of the Strait of Hormuz. At the close of European markets, the Dow Jones gained 2.7%, the Nasdaq rose by 2.9%, and the broader S&P 500 index climbed by 2.4%.

“I agree to suspend bombings and attacks against Iran for two weeks,” declared the US president on his Truth Social platform just over an hour before his deadline expired.

Tehran, on its part, announced it would cease its attacks if the ceasefire was respected and traffic in the Strait of Hormuz was gradually reopened.

The safe passage in this strategic channel (where the equivalent of 20% of global oil and liquefied natural gas consumption flows daily) will be possible, said the Iranian Minister of Foreign Affairs, Seyed Abbas Araghchi.

“This specific point reassured the markets: with over 20 million barrels per day involved, any prospect of normalization, even temporary, triggered a violent adjustment in prices,” emphasized John Plassard of Citê Gestion.

Oil Prices Drop

Following these developments, oil prices plummeted. The June contract for North Sea Brent plunged by 13% to $95.10 per barrel, while the May contract for WTI fell by 15.6% to $95.32 per barrel.

“Investors anticipate a gradual normalization of traffic in the Strait of Hormuz, which immediately reduces the geopolitical risk premium integrated into energy prices. This relaxation in oil prices mechanically revives hopes of de-inflation and gives central banks more visibility, with the potential for faster rate cuts than anticipated,” explained Antoine Fraysse-Soulier, a market analyst for eToro.

“Behind this very positive reaction, caution remains necessary. The ceasefire is initially temporary, lasting only two weeks, and the positions of both sides remain profoundly divergent. The market is currently pricing in a scenario of rapid normalization, but this is contingent on a political agreement that is still far from certain,” cautioned the market specialist.

Amidst the market movements, Totalenergies fell in line with oil prices, losing 3.1%. Other CAC 40 companies benefitted from the geopolitical calm, with Safran (+10.6%), Schneider Electric (+9.7%), and Société Générale (+9.3%) leading the rebound.

Outside the CAC 40, Air France-KLM rebounded by 11.3%, benefitting from lower oil prices, which would result in reduced fuel costs—an important expense for airlines.

Remy Cointreau rose by 5.5% after announcing its strategic plan “RC Forward” and organizational changes to enhance agility and efficiency.

In small and medium-sized companies, Riber soared by 28% following the publication of its 2025 annual accounts.

Regarding currency markets, the euro gained 0.8% against the dollar, reaching 1.1691 dollars.

Sabrina Sadgui – ©2026 BFM Bourse