The CAC 40 rose 1.8% to close at 8,258 on Monday, reaching its highest level in more than two weeks as investors welcomed signs of a potential diplomatic breakthrough in the Middle East that could end the three-month conflict and reopen the Strait of Hormuz. The prospect of easing tensions triggered a sharp decline in oil prices and reduced concerns over energy-driven inflation. Luxury stocks led gains, with LVMH rising 1.3%, L'Oreal adding 1.9%, Hermes advancing 2.7%, and Kering climbing 2.3%. Financial shares also posted strong gains, including BNP Paribas (+3.1%), Credit Agricole (+1.5%), and Societe Generale (+4.8%). In contrast, TotalEnergies fell 1.5% as lower crude prices weighed on energy producers.