Frankfurt Benchmark Slumps 2.44% on Middle East Fears Fueling Crude and Yield Surge

German equities suffered steep losses on Wednesday as mounting Middle East tensions drove oil prices higher and sparked inflation and interest-rate worries, leading investors to dump risk assets.

Government bond yields also advanced, with Germany’s 10-year Bund yield rising to 3.077% in morning trading.

Crude prices surged more than 6% after U.S. President Donald Trump announced at the NATO Summit that the Iran ceasefire had ended, intensifying fears of a broader conflict and potential disruptions to the Strait of Hormuz.

Brent crude futures jumped to nearly $79 per barrel, while West Texas Intermediate (WTI) crude futures gained 6.5% to around $75 per barrel.

Separately, Tehran conducted strikes against Bahrain and Kuwait, further stoking concerns over a wider regional war.

Germany’s benchmark DAX index fell to as low as 24,826.78 and was recently quoted at 24,866.64, down 622.62 points or 2.44%.

Among individual movers, Deutsche Bank slid 5.7% and Vonovia lost 5.3%. Zalando, Heidelberg Materials, Adidas, SAP, Hochtief, Continental, MTU Aero Engines, Volkswagen, Mercedes-Benz, BMW, Infineon Technologies and Rheinmetall all declined between 3% and 4.5%.

Siemens, Gea Group, Qiagen, Symrise, Fresenius, Deutsche Post, Allianz, Daimler Truck Holding and Bayer recorded losses of 2% to 2.7%.

On the upside, Brenntag and E.ON rose 1.7% and 1.3%, respectively. BASF added 0.85%, while RWE finished slightly higher.

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