Stalled peace efforts between the U.S. and Iran weighed on the Dax on Thursday. The German benchmark index shed 0.5 percent at the opening bell, falling to 24,071 points. Investor nervousness is on the rise, noted Thomas Altmann of QC Partners, as the damage inflicted by this conflict on the global economy grows by the day. Since the outbreak of hostilities, oil prices have surged significantly, as maritime traffic through the Strait of Hormuz has effectively ground to a halt. Approximately one-fifth of the world's crude oil and liquefied natural gas was transported through the strait prior to the start of the war in late February.

It remains unclear if and when peace negotiations between the U.S. and Iran will resume. U.S. President Donald Trump recently extended the ceasefire with Iran indefinitely to allow for further talks. However, the U.S. Navy's blockade of Iranian ports in the Persian Gulf was set to continue. Simultaneously, Iran maintained its restrictions on shipping through the Strait of Hormuz. The price of North Sea Brent crude climbed as much as 4.2 percent on Thursday, reaching 105.15 dollars per barrel.

On the corporate front, investors turned their attention to the gathering momentum of the earnings season. Infineon shares traded 5.9 percent higher, making them the strongest performer on the Dax. A recovery in demand helped rival STMicroelectronics post quarterly results that beat market expectations. Shares of STMicro surged nine percent on the Paris Bourse.

Domestically, SAP is scheduled to report its figures after the market close. The shares eased three percent in anticipation of the release.

In the MDax, RTL rose nearly two percent. EU antitrust authorities have given the broadcaster unconditional approval for its acquisition of pay-TV provider Sky Deutschland.

(Reporting by Daniela Pegna, edited by Christian Rüttger. 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).)