20.04.202616:23:42UTC+00DAX Closes in the Red

Frankfurt’s DAX 40 closed about 1.2% lower at 24,444 on Monday, pressured by a renewed spike in geopolitical tensions between the US and Iran that triggered the closure of the Strait of Hormuz and drove oil prices higher. The latest flare-up followed the US seizure of an Iranian vessel, prompting threats of retaliation from Tehran as the current truce between Washington and Tehran nears its expiry.

Investors are also focused on the potential for a second round of talks in Islamabad this week, after Iran signaled it may not participate. Cyclical sectors bore the brunt of the selloff, with industrials, technology, and automotive stocks among the worst performers.

In single-stock moves, Lufthansa declined 3.2% and TUI lost 3.1%, both weighed down by rising oil prices and concerns over jet fuel availability. Other notable laggards included MTU Aero Engines (-4.3%), SAP (-3.5%), Volkswagen (-2.7%), Siemens Healthineers (-2.3%), and Deutsche Bank (-2.3%).