The CAC 40 index fell 0.7% at close to 7,537 on Monday, its lowest since late April, as markets reacted to a sharp escalation in Middle East tensions.The fall came on the back of US airstrikes against three Iranian nuclear facilities, marking direct US involvement in the conflict between Israel and Iran. This action surprised the markets, which had expected a diplomatic approach based on Trump's previous statements. In response, the Iranian parliament passed a motion to close the Strait of Hormuz, and a warning of potential threats against American personnel and retaliation. To add to the pressure, provisional PMI data revealed a further contraction in the French private sector in June, with the services and manufacturing sectors falling further into contraction territory. On the corporate front, losses were widespread, led by Air Liquide (-2.6%), SocGen (-2.0%) and Kering (-2.0%), while Engie (1.1%) and Teleperformance (1.0%) posted modest gain.