DAX Drops 0.58% as Oil Prices Soar and Middle East Tensions Rise

DAX Futures

The German stock market declined on Thursday, continuing the downward trend from the prior session, as oil prices rose once more amid a lack of significant advancements in alleviating tensions in the Middle East. Oil prices experienced a significant increase as investors assessed the likelihood of enhanced Saudi export flows in contrast to the risks of additional supply disruptions. Brent crude futures experienced an increase of approximately 2.5%, reaching $105.51 per barrel, following a rise of around 4% that ended a five-day decline on Wednesday, driven by increased uncertainty regarding U.S.-Iran negotiations.

Following U.S. President Trump’s threat to ‘annihilate’ Iran, Tehran responded by stating it is ‘ready for dialogue and diplomacy and negotiations without accepting the language of force.’ Automobile stocks experienced a decline, even as new passenger car registrations in the EU increased by 4.5% year-on-year in August. The benchmark DAX, which declined to 25,163.31 earlier, was down 146.72 points or 0.58% at 25,280.07 shortly after noon.

  • Infineon Technologies experienced a decline of 3.7%, Rheinmetall saw a reduction of 3.4%, and Volkswagen decreased by 3.2%.
  • BMW and Mercedes-Benz declined by 2.8% and 2.1%, respectively.
  • Scout24, Deutsche Bank, Fresenius, SAP, Continental, Daimler Truck Holding, Fresenius Medical Care, Vonovia, and Adidas experienced declines ranging from 0.7% to 2%.
  • Beiersdorf experienced an increase of 1.8%, Deutsche Telekom saw a rise of 1.3%, and Allianz recorded a gain of 1.1%.
  • Henkel, Munich RE, E.ON, MTU Aero Engines, Siemens, Deutsche Post, and Hannover RE experienced an increase ranging from 0.5% to 0.8%.

In economic news, German business confidence increased to its highest level in over three years in September, reflecting the ongoing recovery of the economy, according to monthly survey data from the ifo Institute. The business climate index increased to 89.9 in September, up from 88.8 in the prior month. This represented the highest score since May 2023 and exceeded the forecast of 89.1. The current situation index increased to 89.5 in September, up from 88.5 in the prior month. At 90.4, the expectations index increased to its highest level since October 2025, up from 89.0 in August.