The DAX 40 experienced a modest decline, hovering around 25,000 on Tuesday, after a slight uptick the previous day, in the context of rising tensions between the US and Iran. The announced reinstatement of a US blockade around Iranian ports and President Trump’s proposal to levy a 20% fee on cargo transiting the Strait of Hormuz have resulted in a significant increase in oil prices, heightening concerns regarding potential inflationary pressures and the likelihood of tighter monetary policy.

Meanwhile, investors focused on the earnings reports released by major US banks. Most sectors faced downward pressure, notably travel and leisure, industrials, software, pharmaceuticals, and retailers, whereas chemicals, autos, and utilities demonstrated resilience against this trend.

Among the leading decliners were Lufthansa, which saw a decrease of 1.8%, TUI with a decline of 2%, and the industrial giant Rheinmetall, which fell by 2.6%.