Germany's DAX index drops sharply as Middle East conflict escalates

Germany's leading DAX stock index fell sharply on Monday as markets responded to the escalating conflict in the Middle East.

The DAX fell 2.3% to 24,697 points shortly after opening amid fears that the US-Israeli attack on Iran, and Tehran's response, could cause oil and gas prices to soar.

On Saturday, Israel and the United States launched a large-scale offensive against Iran, killing supreme leader Ayatollah Ali Khamenei and top military leaders.

Tehran responded with attacks on targets in Israel and several US military bases in the Gulf region, with fighting spreading to Lebanon on Monday.

Iran has also restricted shipping through the Strait of Hormuz, a key chokepoint for global energy trade.

Around one-fifth of the world's daily oil shipments pass through the strait, and any disruption can push energy prices higher and unsettle global markets.

Brent crude for April delivery rose 14% in the first minutes of trading to $82.37 a barrel, its highest level since January 2025. US West Texas Intermediate (WTI) crude also posted double-digit gains.

After the initial surge, prices gave back some of the early gains but remained up around 7.5%.

In Frankfurt, the MDAX index of medium-sized companies lost 2.7% to 30,706 points at the start of the week, while the eurozone's leading index, the EuroStoxx 50, fell by 2.3%.