The DAX Index Closes 1.15% Lower

Frankfurt's DAX 40 finished about 1.2% lower at 24,444 on Monday, after an escalation in US–Iran tensions over the weekend led to a renewed closure of the Strait of Hormuz and pushed oil prices higher. Hostilities flared following the US seizure of an Iranian vessel, with Tehran threatening retaliation, as the truce between Washington and Tehran approaches its expiration. Attention remains on the possibility of a second round of talks in Islamabad this week after Tehran indicated it may not take part. Industrials, tech and autos were among the hardest hit. In equities, Lufthansa dropped 3.2% and TUI fell 3.1%, respectively, on the back of higher oil prices and concerns over jet fuel reserves. Other top losers included MTU Aero Engines (-4.3%), SAP (-3.5%), Volkswagen (-2.7%), Siemens Healthineers (-2.3%) and Deutsche Bank (-2.3%). On the upside, RWE (2.5%), Commerzbank (1.2%) and Deutsche Borse (1.1%) advanced the most.

The DAX Index decreased -284 points or 1.15 percent on Monday to close at 24418 points. The decline was led by MTU Aero Engines AG (-3.83%), SAP (-3.39%) and Volkswagen (-2.65%).

Frankfurt's DAX 40 fell more than 1% to around 24,400 on Monday, pressured by renewed tensions in the Middle East over the weekend. Iran reversed its decision to reopen the Strait of Hormuz and reimposed restrictions on the strategic waterway after Washington signaled it would maintain its blockade of Iranian ports. US later seized an Iranian cargo ship it accused of violating its naval restrictions. The developments come as US negotiators travel to Pakistan for a second round of talks on the eve of the truce’s expiration, with Tehran threatening to boycott the process. As a result, oil prices rose again, reigniting concerns about inflationary pressures and the broader outlook for economic growth. Most sectors saw declines, with travel, industrials and tech sectors among the hardest hit. Lufthansa dropped over 3% on the back of higher oil prices and concerns over jet fuel reserves. SAP, MTU Aero Engines, Deutsche Bank and Siemens Energy also posted steep losses, up to 3.3%.