On Friday, Frankfurt’s DAX 40 experienced a decline of nearly 1%, settling at approximately 24,450. This drop continued the downward trend from the previous day, as market participants assessed the implications of renewed military confrontations in the Strait of Hormuz alongside additional tariff threats. The United States has reportedly engaged military targets in Iran following the country’s fire upon three naval destroyers navigating the Strait, all occurring during delicate negotiations concerning a potential peace framework.

Simultaneously, US President Trump pledged to implement “much higher” tariffs on the EU by July 4 should the bloc not lower its tariffs on US goods to zero. Rheinmetall shares faced significant downward pressure, declining over 10%, in the wake of JPMorgan’s downgrade to neutral from overweight. Commerzbank experienced a decline of more than 1% following the release of its quarterly results.

In the wake of a robust first quarter, the bank has revised its financial objectives upward and outlined its strategic direction for the forthcoming years, coinciding with UniCredit’s acquisition proposal, which includes intentions to reduce its workforce by 3,000 positions. On the upside, Fresenius Medical Care recorded a 4.3% increase, while Henkel saw a rise of 3.6%.