Tension is running high on European markets against the backdrop of a regional war in the Middle East, four days after the launch of hostilities by the US-Israeli coalition against Iran.

Such a geopolitical context is fueling a surge in oil prices. After gaining more than 6% yesterday, oil prices continue their upward trajectory: +6.74% for Brent at $83.30 and +7.87% for WTI, at $76.38.

"The attack by the United States and Israel against Iran could prove to be the most significant military escalation in the Middle East in more than two decades. Reports of the assassination of Supreme Leader, Ayatollah Ali Khamenei, have plunged the Islamic Republic into its gravest crisis since the 1979 revolution. As we are likely closer to the beginning of this conflict than its end, its duration and scope will determine how many asset classes are ultimately affected and the scale of the impact on prices," notes Nitesh Shah, Head of Commodities and Macroeconomic Research for Europe at WisdomTree.

"On the bond side, a prolonged energy shock could weaken growth while supporting inflation, creating a more complex environment for central banks," says Chris Iggo, Chair of the Investment Institute and CIO of AXA IM Core at BNP Paribas Asset Management.

In terms of individual stocks, with the notable exception of Capgemini (+0.63%), all other CAC 40 stocks were in the red around 12:00 p.m. Thales (-2.50%) failed to win investor favor despite a strong 2025 annual report paired with what are considered cautious outlooks.

Worldline (-6.64%) announced it has completed the sale of its North American operations to Shift4, for an enterprise value of approximately 70 million euros.

Elsewhere in Europe, Beiersdorf (-17.06%), maker of Nivea cream, issued cautious forecasts for 2026, citing moderate or even flat revenue growth and a decline in operating margin.

On the statistics front, annual inflation in the eurozone is expected to reach 1.9% in February 2026, up from 1.7% in January, according to the flash estimate published by Eurostat, the statistical office of the European Union. Services remain the main driver of price increases, with an expected rise of 3.4% year-on-year, after 3.2% in January.

Around 12:00 p.m., the euro was down 0.85% at $1.1595.