German DAX Falls 0.58% Amid Oil Price Surge, Middle East Tensions

(RTTNews) - The German stock market shed ground on Thursday, extending weakness from the previous session, as oil prices climbed higher again with no meaningful progress being made so far to de-escalate Middle East tensions.

Oil prices rose sharply as investors weighed the prospect of improved Saudi export flows against the potential for further supply disruptions.

Brent crude futures were up by about 2.5% at $105.51 a barrel after climbing around 4% to snap a five-day losing streak on Wednesday amid heightened uncertainty surrounding U.S.-Iran negotiations.

After U.S. President Trump threatened to 'annihilate' Iran, Tehran said it is 'ready for dialogue and diplomacy and negotiations without accepting the language of force.'

Automobile stocks lost ground despite EU new passenger car registrations rising 4.5% year-on-year in August.

The benchmark DAX, which fell to 25,163.31 earlier, was down 146.72 points or 0.58% at 25,280.07 a few minutes past noon.

Infineon Technologies dropped 3.7%, Rheinmetall shed 3.4% and Volkswagen drifted down by 3.2%. BMW and Mercedes-Benz eased by 2.8% and 2.1%, respectively.

Scout24, Deutsche Bank, Fresenius, SAP, Continental, Daimler Truck Holding, Fresenius Medical Care, Vonovia and Adidas lost 0.7%-2%.

Beiersdorf climbed 1.8%, Deutsche Telekom moved up 1.3% and Allianz gained 1.1%. Henkel, Munich RE, E.ON, MTU Aero Engines, Siemens, Deutsche Post and Hannover RE advanced 0.5%-0.8%.

In economic news, German business confidence rose to its highest level in more than three years in September as the economy continued its recovery, monthly survey data from the ifo Institute showed.

The business climate index rose to 89.9 in September from 88.8 in the previous month. This was the highest score since May 2023 and was also above forecast of 89.1.

The current situation index climbed to 89.5 in September from 88.5 in the previous month. At 90.4, the expectations index rose to the highest level since October 2025, from 89.0 in August.