Frankfurt’s DAX 40 closed about 0.2% lower at 23,590 on Thursday, extending the previous session’s losses as tensions in the Middle East intensified. Iran and the United States continued to exchange threats, heightening concerns over a prolonged conflict and persistent disruption risks to oil shipments through the Strait of Hormuz.
The new Supreme Leader, Mojtaba Khamenei, vowed to “avenge the blood of the martyrs” and urged countries in the region to shut down American military bases on their soil.
Banks were among the biggest decliners amid growing worries about rising defaults in the consumer lending market. Deutsche Bank dropped 5.4% after its annual report highlighted €26 billion in private credit exposure and a potential $1 billion litigation risk. Commerzbank also retreated, losing 3.9%.
On the upside, online fashion retailer Zalando jumped more than 10% after unveiling a €300 million share buyback program. Hannover Re gained 4.9% following a dividend increase, while RWE advanced 4.3% after reporting solid 2025 results and presenting an ambitious expansion strategy.
