Around 10:30 a.m., the CAC 40 is down approximately 1% at 7,769 points, while the pan-European STOXX Europe 50 index has shed 1.6%. London's FTSE is down 0.9% and Frankfurt's DAX has dropped 1.6%.

As a reminder, across the Atlantic, the S&P 500 ended Wednesday with a gain of over 0.5% (at 6,592 points), while the Dow Jones and the Nasdaq 100 both rose nearly 0.7%, to 46,429 points and 24,163 points respectively.

Equity markets yesterday benefited from hopes surrounding the presentation of a 15-point peace plan reportedly transmitted by the Trump administration to the Islamic Republic via Pakistani negotiators.

However, while Donald Trump insists that discussions are indeed taking place with Iran, Tehran claims it has "no intention of negotiating," fueling fears of a prolonged conflict with a lasting economic and financial impact.

"Iran has every reason to avoid appearing cooperative publicly, as pressure on oil and financial markets is part of its bargaining leverage," notes Charu Chanana, Head of Investment Strategy at Saxo.

Oil prices trending upward again

Persistent geopolitical anxieties are naturally reflected in oil prices, with WTI rising 2.3% to $93.3 per barrel and Brent gaining 2.6% to $105.7 per barrel.

"Market attention is quickly turning to the end of Trump's five-day deadline, starting Monday, when he announced he would postpone strikes against Iranian energy infrastructure," explains a Deutsche Bank economist.

"That leaves just over 48 hours now, and several media outlets have reported that thousands of US troops have been deployed to the region. Thus, the prospect of further escalation remains a top priority for investors," he continues.

Stable business climate but depressed households in France

Released early this morning, France's composite business climate indicator, calculated by INSEE from surveys of business leaders in major market sectors, remains stable at 97, staying below its long-term average (100) for two years.

"The business climate is deteriorating in wholesale trade and manufacturing, remains stable in services, and is improving in construction and retail," the national statistics institute stated in its press release.

Furthermore, INSEE indicates that French consumer confidence has edged lower: the synthetic indicator lost 2 points to 89, moving further away from its long-term average (100 between January 1987 and December 2025).

Notably, it highlights that the share of households expecting prices to accelerate over the next twelve months has risen sharply amid intense geopolitical tensions.

Heavy losses for Edenred and Trigano

In corporate news, Soitec (+1.5%) is one of the top performers on the SBF 120, boosted by Morgan Stanley, which upgraded it to "overweight" and doubled its TP to €70 on an improved outlook.

In contrast, Edenred is plunging 12.6% following the opening of an investigation by the Italian competition authority, which suspects the company of implementing a strategy aimed at passing on entirely unjustified costs to major retail chains.

Also struggling, Trigano is down 2.5%: against a backdrop of rising fuel prices, the French motorhome specialist reported revenue on Wednesday evening that fell short of analyst consensus.

Elsewhere in Europe, H&M is shedding 5.3% in Stockholm despite operating profit exceeding expectations. This performance is overshadowed by a 1% organic decline in sales and cautious remarks regarding the impact of Middle East tensions.