After several weeks of ceasefire, the situation has tightened once again in the Strait of Hormuz, which remains subject to a dual Iranian-American blockade. Yesterday, a US Navy warship was forced to turn back following Iranian warning shots as it attempted to enter the strait.

This was not an isolated incident: a South Korean vessel was also targeted, and Iranian drones struck an oil terminal in the United Arab Emirates. In response, Donald Trump announced that his military had destroyed 'seven small craft' in the Strait of Hormuz overnight.

This resumption of hostilities comes as Iran indicated that the US 'Project Freedom', aimed at restoring passage through the strait by escorting vessels, risked exacerbating regional tensions. Foreign Minister Abbas Araqchi reiterated that 'there is no military solution to a political crisis' and warned Washington of the risk of the conflict becoming bogged down.

Oil prices under watch

'Our enemies must know that the Persian Gulf is not a field for the unilateral imposition of foreign wills, but an integral part of the system of international interactions', added Masoud Pezeshkian, the President of the Islamic Republic.

Consequently, oil prices remain at very high levels, with WTI crude around 104 dollars (-0.6%) and Brent crude around 113.1 USD (-0.9%).

Despite the level of crude prices, Goldman Sachs remains reassuring, stating that global inventories are 'still comfortable', representing over 101 days of demand, but nonetheless warns that they are 'falling rapidly'. The bank specifically pointed to tightness in refined products such as naphtha, LPG, and jet fuel.

'Shortage risks are emerging in Asia and Europe, with European jet fuel stocks likely to fall below a critical threshold as early as June', analysts explained.

Stocks on the move

At mid-session, the French benchmark index, the CAC 40, is being driven by Orange (+2.6%), benefiting from an upgrade by Goldman Sachs, which moved from 'neutral' to 'buy' with a price target raised from 17.50 to 21.60 EUR. Schneider Electric (+2.4%) and Eiffage (+2%) complete the podium.

Elsewhere in Europe, AB InBev is up 7%, buoyed by first-quarter results that beat expectations, marked by a return to volume growth (+1.2%). The market also noted the increase in EBITDA and underlying EPS, as well as the confirmation of 2026 targets, ahead of a year supported by major events such as the FIFA World Cup.

UniCredit is also gaining nearly 5%, supported by a record quarterly net profit of 3.2bn EUR for the first quarter of 2026. This result, up 16% year-on-year, significantly exceeds market expectations, which were around 2.7bn EUR. The Italian banking group also raised its annual outlook.

On the downside, Fresenius Medical Care has shed 5% after reporting a 6% decline in revenue to 4.61bn EUR, primarily due to significant currency effects related to the weakness of the dollar.

HSBC is down nearly 6% after reporting a decline in pre-tax profit for the first quarter of 2026. Management specified that 'this decline reflects the increase in expected credit losses and other credit impairment charges'.

Earnings and statistics to watch

Furthermore, markets will digest the accounts of Axa, JCDecaux, and Ferrari in Europe, as well as AMD, Shopify, and Pfizer across the Atlantic.

Several statistics are also expected in the United States, notably the trade balance, the ISM Services index, new home sales, and, most importantly, the jobs report.