DAX Declines 0.58% on Oil Price Surge and Heightened Middle East Tensions

The German benchmark declined on Thursday, extending losses from the prior session as crude oil prices climbed further and diplomatic efforts to ease Middle East tensions stalled.

Brent crude futures gained roughly 2.5% to $105.51 per barrel, building on a nearly 4% advance the previous session that ended a five-day slide. Investors balanced expectations of stronger Saudi export flows against fears of additional supply disruptions.

Tensions escalated after U.S. President Trump threatened to “annihilate” Iran, while Tehran stated it remained open to dialogue and diplomacy but rejected any language of force.

Automobile stocks weakened despite EU new passenger car registrations rising 4.5% year-over-year in August.

The DAX earlier dipped to 25,163.31 before settling 146.72 points, or 0.58%, lower at 25,280.07 shortly after midday.

Infineon Technologies fell 3.7%, Rheinmetall dropped 3.4%, and Volkswagen declined 3.2%. BMW and Mercedes-Benz slipped 2.8% and 2.1%, respectively.

Scout24, Deutsche Bank, Fresenius, SAP, Continental, Daimler Truck Holding, Fresenius Medical Care, Vonovia, and Adidas lost between 0.7% and 2%.

Beiersdorf rose 1.8%, Deutsche Telekom gained 1.3%, and Allianz added 1.1%. Henkel, Munich RE, E.ON, MTU Aero Engines, Siemens, Deutsche Post, and Hannover RE advanced 0.5% to 0.8%.

German business confidence reached its highest level in over three years in September, according to monthly data from the ifo Institute. The business climate index climbed to 89.9 from 88.8 in August, exceeding the forecast of 89.1 and marking the strongest reading since May 2023. The current situation index rose to 89.5 from 88.5, while the expectations index reached 90.4, its highest since October 2025, up from 89.0.

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