The announcement of an Iran peace agreement has triggered a surge in the Dax. The German benchmark index opened nearly two percent higher on Monday at 25,068.37 points, reclaiming the psychologically significant 25,000-point mark for the first time in ten days.

The United States and Iran have reached a peace agreement, according to statements released early Monday by US President Donald Trump, the Iranian Foreign Ministry, Iran's National Security Council, and the mediating nation of Pakistan. The official signing of the accord is scheduled for Friday. 'Even if important questions remain open, the preliminary peace agreement represents the most credible outcome of weeks of negotiations to date,' said Jochen Stanzl, chief market analyst at brokerage CMC Markets. Most importantly, Iran and the US have 'credibly demonstrated that they are interested in lifting the mutual blockade of the Strait of Hormuz.' However, many experts warned of remaining risks regarding talks on the Iranian nuclear program and Israel's conduct toward Lebanon.

Demand was particularly strong for travel and aviation stocks: shares of TUI, Fraport, and Lufthansa climbed by up to six percent. Conversely, shares of the defense contractor Rheinmetall were sold off, falling two percent to become the weakest performer in the Dax.

(Report by Sanne Schimanski, edited by Ralf Banser. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)