France: CAC 40 Drops Amid US Strikes on Iran.

The CAC 40 slipped 1% to close at 8,173 on Tuesday as renewed military action weakened hopes for a US-Iran peace agreement. The US and Israel carried out targeted strikes in Iran, renewing uncertainty over when the Strait of Hormuz could reopen and reviving concerns about prolonged inflation driven by elevated energy prices. On the monetary policy front, Isabel Schnabel said the ECB should proceed with an interest rate hike in June even if tensions in the Middle East ease. The central bank is widely expected to raise borrowing costs by 25 basis points next month. Luxury stocks led losses, with LVMH down 1.8%, Herm