As the conflict between Washington and Tehran enters its fourth month, both sides have established a framework agreement to end hostilities, according to US sources. The deal reportedly involves a 60-day extension of the ceasefire, though this provision remains subject to the US President's approval.

Earlier, the American news site Axios revealed that 'this preliminary agreement does not, however, resolve the issue of the Iranian nuclear program.' Nevertheless, it reportedly includes a commitment from Iran not to acquire atomic weapons.

Furthermore, according to Axios, citing two US officials, the protocol provides for 'unlimited' access to the Strait of Hormuz. In exchange, the Americans would lift the blockade on Iranian ports and suspend sanctions to allow Iran to sell its oil.

As exchanges of strikes intensify, Tehran continues to demand the unfreezing of 24 billion dollars in assets held abroad. Regarding the nuclear issue, the Iranian capital refuses any foreign transfer of its enriched uranium stockpile, the destruction of which is demanded by Donald Trump.

Against this heavy geopolitical backdrop, crude oil prices continue their retreat, remaining below the 100-dollar threshold for a week. Brent is down 1.36% at 92.04 USD, while WTI is shedding 1.44% to 87.37 USD.

'Energy prices have retreated significantly this week, returning to their levels from the start of the mid-May ceasefire, with oil well below 100 dollars after exceeding 110 mid-month. Discussions between the Americans and Iranians continue and are progressing according to both sides, but without concrete breakthroughs and without preventing 'defensive' strikes,' explained Xavier Chapard, Deputy Head of Research at LBP AM, in an analyst note.

He further noted that 'the price of oil is at its lowest since the early days of the mid-April ceasefire, after having climbed back above 110 mid-month.' 'That said, these prices remain 25 USD above their pre-war levels in Iran, and one-year forward oil prices remain stable, 15 USD above their pre-crisis levels. Gas prices are following a fairly comparable trend,' he added.

Derichebourg shines

In corporate news, Derichebourg is posting one of the strongest gains on the SBF 120 with a 7.29% jump. The metal recycling specialist raised its annual recurring EBITDA target after reporting first-half results that beat expectations. It now targets recurring EBITDA between 350 and 370 million euros for the 2025-2026 fiscal year, up from a previous range of 320 to 350 million euros. For the half-year, its revenue reached 1.83 billion euros, up 7.8% year-on-year.

Additionally, the Paris Prosecutor's Office announced that Swiss lawyer Alexandre Montavon has been placed under formal investigation as part of the probe into LVMH's stake-building in Hermes, Reuters reports. This operation triggered a legal and stock market battle between the two luxury groups more than a decade ago. Investigated for complicity in breach of trust, the Swiss lawyer is suspected of participating in the misappropriation of Hermes shares belonging to Nicolas Puech, an heir to the group's founding family, for the benefit of LVMH.

Remy Cointreau is edging up 0.3%. Ahead of the wine and spirits group's annual results publication next Thursday, TP Icap Midcap reviewed the company's situation. Analysts believe the 2025-2026 fiscal year was a transition period, following a 2024-2025 fiscal year that marked a low point. They are now betting on a gradual cycle-exit scenario, with 2026-2027 expected to mark the start of a still-moderate recovery in an environment where visibility remains limited, particularly regarding cognac and dynamics in China and the US.

Worldline has finalized the sale of its payment activities in New Zealand to Cuscal Limited for an enterprise value of approximately 17 million euros. Under the agreement, it will continue to provide technological and software services to Cuscal during a transition period.

France: Inflation accelerates again in May driven by energy

On the statistical front, according to Insee's provisional month-end estimate, consumer prices in France are expected to rise by 2.4% year-on-year in May 2026, marking an acceleration from 2.2% in April. This increase is again attributed to accelerating energy prices, driven this month by a rise in gas prices. On a monthly basis, consumer prices are expected to rise for the fourth consecutive month in May, up 0.1% after a 1.0% increase in April. This slight price rise is explained by higher energy and food prices, particularly fresh produce.

In the first quarter of 2026, France's gross domestic product (GDP) in volume terms contracted slightly (-0.1%), marking a 0.1 percentage point downward revision (after rounding) compared to the initial estimate published on April 30 by Insee.

Furthermore, French household consumption expenditure on goods fell by 0.5% in volume terms over one month in April, following a 0.9% increase in March (a figure revised upward by 0.2 points from the initial estimate), according to seasonally and working-day adjusted data from Insee.

In Germany, the number of unemployed decreased by 58,000 in May compared to the previous month, reaching 2,950,000, representing a seasonally adjusted decline of 12,000. The unemployment rate fell by 0.1 points to 6.3%, according to the Federal Employment Agency.