DAX Remains Weak Despite Coming Off Early Lows

(RTTNews) - German stocks drifted lower on Tuesday, weighed down rising oil prices and bond yields amid escalating concerns about escalating Middle East tensions.

Supply concerns returned to the fore after U.S. President Donald Trump reimposed a blockade on Iranian ships transiting the Strait of Hormuz and proposed to impose a 20% fee on all cargo passing through the vital waterway for guarding it.

In a post on X, Iranian foreign minister Seyed Abbas Araghci mocked Trump over his proposal and said Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. "20 percent is of course too much. We will be fair," Araghchi wrote.

Meanwhile, after the United States launched fresh strikes on Iran for the third consecutive night, Tehran responded with attacks targeting Bahrain, Jordan and two tankers associated with the United Arab Emirates.

Iran's Islamic Revolutionary Guard Corps (IRGC) claimed that it downed an American MQ-1 drone over the Strait of Hormuz.

Brent crude oil futures climbed to $87.38 a barrel before easing to $86.53 a barrel, still up nearly 4% from previous close.

The German market's benchmark DAX, which fell to 24,858.16, was at 24,998.62 a little while ago, still trailing its previous close by 88.56 points or 0.35%.

Scout24 dropped about 3.5%. Qiagen, MTU Aero Engines and Continental lost 2%-2.2%. SAP, Beiersdorf, Henkel, Symrise, Heidelberg Materials, Deutsche Boerse and Adidas shed 1.6%-1.8%.

Merck, Gea Group, Vonovia, Fresenius and Siemens Healthineers drifted down 1%-1.5%. Commerzbank, Rheinmetall, Siemens Energy, Hochtief and BMW also showed notable weakness.

Brenntag moved up 2.3%. BASF and Mercedes-Benz climbed 1.75% and 1.3%, respectively. E.ON, RWE and Zalando gained 0.4%-0.8%.

In economic news, data from Destatis showed Germany's wholesale prices rose 4.9% year-on-year in June, easing from a 5.9% increase in May. On a monthly basis, wholesale prices fell 0.7% in June, following a 0.6% drop in May, marking the second consecutive monthly decline and contrasted with market expectations for a 0.5% rise.