The CAC 40 jumped 1.8% to close at 8,351 on Friday, marking its biggest gain in a month and reaching a seven-week high, as renewed hopes for a Middle East peace deal lifted global sentiment. US President Donald Trump said an agreement with Iran could be reached as early as this weekend after postponing planned strikes, raising the prospect of reopening the Strait of Hormuz and pushing oil prices lower. Domestically, France’s annual inflation rate was confirmed at 2.4% in May, the highest since February 2024, driven mainly by higher energy prices. Meanwhile, the ECB raised interest rates for the first time in nearly three years and signaled that restrictive policy could remain in place through 2027. Financial stocks led gains, with BNP Paribas rising 5% and Societe Generale adding 5.9%. Luxury shares also advanced, with LVMH up 3.6% and Hermes gaining 3%. In the industrial sector, Airbus rose 2.3% and Safran added 3.6%. In contrast, TotalEnergies fell 2.1% on lower oil prices.