French Stocks Plummet Amid Oil Price Fears and Inflation Worries

The French stock market hit its lowest level in two months as concerns over rising oil prices and inflation pressures mounted.

The CAC 40 index fell by 0.4% to 8,270 on Tuesday, reversing the previous session's gains.

This decline was partly driven by escalating Middle East tensions, which continue to disrupt oil shipments through the Strait of Hormuz.

Iran and Oman are reportedly close to an agreement that would establish a safe maritime route, but supply concerns persist.

The European Central Bank now expects to raise borrowing costs by 25 basis points in response to accelerating eurozone inflation, which reached its highest level since August 2018 at 3.3%.