On Wall Street, U.S. markets are trading slightly lower. Around 5:45 p.m., the Dow Jones was down 0.12%.

Trump maintains aggressive stance toward Iran

Regarding the conflict between Washington and Tehran, the White House occupant asserted that he was not finished with Iran. "We are going to hit them extremely hard over the next two to three weeks. We are going to send them back to the Stone Age where they belong," he declared. He also threatened to target Iranian energy infrastructure, stating that in the absence of an agreement, the United States would "strike every single one of their power plants very hard and probably simultaneously."

As strikes continue in the Middle East, the U.S. President claimed that Iran no longer poses a real threat. "This country has been decimated. Tonight, all Americans can believe that we are free from this Iranian nuclear threat; we are on the verge of destroying it for good, and when we are finished, we will be stronger and more prosperous than ever," he maintained last night.

Iran's response was immediate following Trump's speech. "This war will continue until your humiliation, your dishonor, your final regrets, and your surrender. Expect even more crushing, extensive, and destructive actions," stated the operational commander of the Khatam al-Anbiya army in a statement broadcast by state television.

Regarding the geopolitical tensions between the U.S. and Iran, China pointed the finger at the United States and Israel. During her press briefing, Chinese Foreign Ministry spokesperson Mao Ning estimated that "illegal U.S. and Israeli military operations are the primary cause of disruptions to navigation in the Strait of Hormuz." Only a ceasefire and the cessation of hostilities "will preserve the security of international maritime traffic," she added.

Following Trump's remarks, a sharp rebound in oil prices galvanized the energy sector in the commodities market. Brent jumped 6.8% and WTI climbed over 11.4% around 5:45 p.m. to 107.06 and 110.18 dollars respectively.

TotalEnergies among the CAC 40's top performers

Eni gained nearly 5%, Repsol rose by more than 3%, and BP posted one of the strongest gains on the FTSE 100 with a rise close to 3%. Within the same London index, Shell advanced 2.85%. In Paris, Maurel & Prom surged 7.48%. TotalEnergies was among the top performers on the CAC 40 with a 2.4% gain.

Furthermore, the French oil giant's stock rose on the back of two favorable notes from J.P. Morgan and Citi.

In its research note today, J.P. Morgan maintained its Overweight rating and raised its price target on TotalEnergies from 86 to 86 EUR. The U.S. bank justified its decision notably by the oil group's competitive upstream leverage. TotalEnergies benefits from exceptional longevity of its Oil & Gas (O&G) assets, with proved reserves spanning 12 years.

Citi also raised its target on TotalEnergies from 75 to 90 EUR. The broker also maintained its Buy recommendation. According to the U.S. financial firm, "the investment thesis remains unchanged, supported by the strength of the French multinational's oil and gas operations, as well as the ramp-up in profitability and the strategic importance of the Integrated Power division."

Elsewhere in corporate news, Lufthansa fell by approximately 4%. The German airline did not escape the violent sell-off in the aviation sector triggered by the Middle East conflict. Trump's particularly muscular speech stunned markets, leading to a brutal spike in crude prices. Airlines bore the brunt of this surge, as fuel typically accounts for 25% to 30% of their operating costs.

While legacy carriers manage to pass on about 50% of cost inflation through pricing, Lufthansa suffers from a fuel hedging position that is "less attractive" than its peers, Morgan Stanley points out. According to the broker, the sustained rise in kerosene prices is expected to weigh on the group's profitability: the analyst anticipates a roughly 17% decline in EBITDA by 2026.

Last night, Accor (+1.38%) announced the signing of a memorandum of understanding with Blackstone to sell its 30.56% stake in Essendi (formerly AccorInvest) to a consortium formed by Blackstone and Colony IM. Analysts greeted the transaction with some skepticism.

The deal could reach 975 million euros, including 675 million euros paid upon completion and an earn-out of up to 300 million euros. This morning, Yi Zhong, who covers the stock at AlphaValue, reported that the terms of the agreement appear "unconvincing." The analyst cited an implied EV/EBITDA ratio "below its peer group average" and estimated that "the price reflects a considerable discount to the estimated net asset value (NAV)."

For its part, Jefferies highlighted progress in the disposal of the Essendi stake with the signing of the MOU, but judged the structure of the sale price as "mixed," as the initial valuation of 675 million euros fell short of market expectations.