The CAC 40 index staged a recovery on Thursday morning, rising 0.56% to 8,298.81 points by 10:15 local time.

The rebound followed a sharp decline on Wednesday, driven by a pullback in crude oil prices that helped ease immediate pressure on European equities.

Capital.fr reported that investors are attempting to look beyond the immediate shock of escalating tensions with Iran, though the underlying risk premium persists.

Despite the intraday recovery, market sentiment remains fragile.

Capital.fr reported that investors are attempting to look beyond the immediate shock of escalating tensions with Iran, though the underlying risk premium persists.

The market's ability to stabilize hinges on whether energy costs continue to moderate or if geopolitical fears reignite selling pressure.

The backdrop for this volatility is the intensification of US military strikes on Iran, a development that has already disrupted sentiment across global markets.