Iran War Threatens Mortgage Lending in France

(MENAFN) The ripple effects of the war in Iran are reaching deep into French household finances, with the blockade of the Strait of Hormuz pushing government bond yields to levels unseen since the 2009 financial crisis and forcing banks to revise mortgage rates upward, a newspaper reported Monday.

The French 10-year OAT — a key benchmark for residential mortgage lending — surged to nearly 3.90% on Friday, a threshold last breached during the global financial meltdown over 15 years ago. The spike has already prompted several lenders to revise their April rate schedules upward by an average of 0.10 percentage points, with one institution hiking rates by as much as 0.30 points.

Pierre Chapon, co-founder of mortgage broker Pretto, warned the adjustment is far from over.

"Other banks will follow with similarly strong increases," he said.

Lending rates had already been trending higher amid budget pressures and mounting public debt concerns before pulling back earlier this year. The latest surge, however, arrives at a particularly sensitive moment for the property market, according to the newspaper.

For now, analysts are urging caution over alarm. Eric Allouche, head of the Era Immobilier network in France, sought to temper concerns over affordability.

"The increases in borrowing costs remain limited for now," he noted.

Truckers Take to Paris Streets Over 'Insufficient' €50M Fuel Aid
Frustration over soaring fuel prices spilled onto Parisian roads Monday, as dozens of coaches and trucks staged a slow-driving protest through the capital to challenge the government's relief measures, a broadcaster reported.

The demonstration targeted the €50 million ($57 million) emergency aid package announced for April by Transport Minister Philippe Tabarot, which drivers widely dismissed as falling well short of what is needed to absorb the surge in pump prices.

Julien Bigaud, manager of a transport company, voiced the industry's frustration directly.

"The state needs to help us more, particularly regarding taxes, and that's where we hope to be heard," he told the broadcaster.

The economic turbulence gripping France traces back to the joint US-Israeli military offensive against Iran launched on February 28, which has claimed more than 1,340 lives — among them former Supreme Leader Ayatollah Ali Khamenei. Tehran has since retaliated with drone and missile strikes directed at Israel, Jordan, Iraq, and Gulf states hosting US military assets, inflicting casualties and infrastructure damage while throwing global markets and aviation into disarray.

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