The CAC 40 climbed more than 1% to 8,206 on Monday, extending gains from the previous week and reaching its highest level in over two weeks as investors seized on signs of a potential diplomatic breakthrough in the Middle East to end the three-month conflict and reopen the Strait of Hormuz. The prospect of a resolution triggered a sharp sell-off in crude markets and the easing of deep-seated fears over energy-driven inflation. Gains were spearheaded by luxury heavyweights, particularly LVMH (0.9%), Hermes (1.5%), and Kering (0.9%). Financial stocks also showed strength, including BNP Paribas (1.8%), Credit Agricole (1.5%), and Societe Generale (2.3%). Conversely, energy major TotalEnergies tumbled 2.1% amid falling oil prices.