Dax tops 26,000 for first time as Trump cancels Iran strike and pledges talks
The German blue-chip index jumped 1.47% on Monday morning after Donald Trump called off a major attack on Iran and said negotiations would begin, sending Brent crude down to $83 a barrel.
The record print
Germany's Dax equity index crossed the 26,000-point threshold for the first time on Monday morning, reaching 26,005.10 points shortly after the Frankfurt open. The move represented a gain of 1.47% from Friday's close and eclipsed the previous all-time high of 25,900.10 points set on 2 July. Earlier in the session the index had already broken through that July peak, touching 25,912.59 points within minutes of the opening bell before climbing further. The advance extends the Dax's year-to-date gain to roughly 5%.
The geopolitical trigger
Over the weekend, US President Donald Trump told reporters that a large-scale military strike on Iran had been cancelled and that the United States would begin talks with Tehran on Monday afternoon. The announcement reversed the escalation that had driven Brent crude above $100 a barrel in mid-July and pushed the Dax down to around 24,650 points. On Monday, Brent fell to $83 per barrel, and West Texas Intermediate also declined. The Strait of Hormuz, a chokepoint for global oil flows, was cited by Iranian sources as being in the final phase of negotiations.
The United States would begin talks with Iran on Monday afternoon.
Oil and inflation relief
Falling crude prices eased two persistent market anxieties: inflation and further interest-rate hikes. The drop in Brent from triple-digit levels in mid-July to $83 on Monday morning reduced input-cost pressure across industries and tempered expectations of tighter monetary policy. The US dollar index slipped 0.1% to 99.79 after Japan and the United States confirmed a joint intervention to support the yen, making dollar-denominated commodities cheaper for overseas buyers. Gold futures in New York edged up 0.2% to $4,113.90 per troy ounce in early European trading.
Tech tailwind
Additional momentum came from the technology sector, where strong quarterly reports from Microsoft and Amazon lifted US and Asian equities and spilled into Frankfurt trading. The Nasdaq's positive session provided a secondary catalyst, reinforcing the risk-on mood that took hold after the geopolitical pivot. The combination of cheaper energy, receding rate fears, and robust tech earnings created what one report described as a collective deep breath across trading floors.
- Dax falls to roughly 24,650 points as US strikes on Iran intensify and Brent crude tops $100.
- Dax reaches intraday high of 25,892 points on Friday but closes at 25,629, just short of the July record.
- Trump cancels major Iran attack and announces talks will begin Monday afternoon.
- Dax opens Monday by jumping to 25,912.59 points, surpassing the 2 July record of 25,900.10.
- Index climbs further to 26,005.10 points, crossing the 26,000 mark for the first time.
From sell-off to surge
The session's gains mark a sharp reversal from the pattern that dominated markets only weeks earlier. In mid-July, intensified US strikes on Iran had sent the Dax tumbling to roughly 24,650 points while Brent surged past $100. On Friday, the index had already tested its record, reaching an intraday high of 25,892 points before pulling back to close at 25,629. The Monday breakout, triggered by a single weekend announcement, underscores how sensitive European equities have become to the trajectory of the US-Iran conflict and the oil price channel it commands.
