The CAC 40 dropped 2.5% to around 7,790 points on Monday, marking a three-session losing streak and its lowest level in more than five months, as surging oil prices deepened inflation concerns amid the escalating Middle East war. Oil prices climbed above $100 per barrel as fears grew that the widening conflict could disrupt shipping routes and global energy supplies. This has revived worries about persistent inflation across the euro area, prompting traders to increase bets that the European Central Bank may tighten policy further. Markets now price in two 25-basis-point rate hikes this year, up from expectations of just one late last week. Nearly all sectors traded in the red, with industrials, tech stocks and banks leading the declines. Heavyweights, such as Schneider Electric, Airbus, Safran, and BNP Paribas dropped between 3% to 5%.