FRANKFURT (dpa-AFX) - The German stock market recovered from a weaker opening on Thursday, posting significant gains as oil prices retreated. The European Central Bank (ECB) interest rate decision and record highs on US exchanges provided additional tailwinds. Ultimately, the German benchmark index closed 1.41 percent higher at 24,292.38 points ahead of the long holiday weekend. This leaves the Dax with a weekly gain of 0.7 percent, while for the month of April, it has surged by over 7 percent. However, the index remains down nearly 4 percent since the outbreak of the Iran war in late February. The MDax, tracking mid-cap stocks, ended Thursday's session up 1.93 percent at 30,589.95 points.

The primary driver for the recovery was a slight easing in the oil market. Stalled negotiations between the US and Iran initially pushed oil prices to multi-year highs before they pulled back noticeably. US President Donald Trump stated on Wednesday that while progress had been made in talks with Tehran, a breakthrough had not yet been reached. Reports suggest Trump is considering resuming larger-scale combat operations, prompting threats of retaliation from Iran.

The European Central Bank left key interest rates in the eurozone unchanged as expected - despite the oil price shock driving eurozone inflation to 3.0 percent in April. However, economists expect the ECB to hike rates later this year. 'We see limited scope for the central bank to look through elevated energy prices and supply disruptions,' commented capital market strategist Ann-Katrin Petersen at asset manager Blackrock. The Bank of England also opted to hold rates steady. On the previous evening, the US Federal Reserve had similarly left its benchmark rate untouched, in line with expectations.

The eurozone's blue-chip EuroStoxx 50 index rose 1.12 percent on Thursday to 5,881.51 points. Markets in London and Zurich also trended higher. In the US, the Dow Jones Industrial Average was up nearly 1.5 percent at the European close, while the tech-heavy Nasdaq 100 climbed to another record high - fueled by substantial gains from tech giants Amazon, Alphabet, and Qualcomm.

Consequently, German semiconductor stocks caught in the AI hype were in high demand. Aixtron rose 5.1 percent following quarterly results, benefiting from demand in its optoelectronics business. Infineon gained 2.6 percent, having already benefited mid-week from strong figures from Dutch chipmaker NXP. Suss Microtec shares hit a record high, finishing up 9.4 percent. Siltronic and PVA Tepla gained 6.3 percent and 3.9 percent, respectively.

DHL Group was the top performer in the Dax, surging 7.5 percent. The logistics group's operating profit (Ebit) for the first quarter came in well ahead of consensus, primarily due to the strong Express business, noted UBS analyst Cristian Nedelcu, who described the Bonn-based company's figures as solid overall.

Chemical giant BASF continued to feel competitive pressure in the first quarter. Analyst Chetan Udeshi at JPMorgan described the quarter as mixed in an initial reaction. While revenue and operating profit declined, BASF confirmed its full-year targets. The shares ultimately rose 1.3 percent.

Volkswagen shares edged up 0.9 percent. Although the carmaker remained under pressure regarding profitability in a difficult environment, JPMorgan analyst Jose Asumendi pointed to strong cash flow. He noted that many investors had focused on this metric, which came in significantly better than he had expected.

Engine manufacturer MTU also impressed with its quarterly report, with shares climbing 2.8 percent. Despite high kerosene prices, MTU does not fear significant impacts from the Iran war on its business. Analysts were also satisfied with the engine maker's first quarter, unanimously praising the strong cash flow.

Brenntag shares recorded a 4 percent increase to 62.08 euros. Earlier, Swiss bank UBS upgraded the chemical distributor from 'Sell' to 'Neutral' and raised the price target from 42 to 60 euros. The Middle East war has shifted the landscape, with price spikes in energy and chemical products leading to better earnings prospects for Brenntag, wrote analyst Nicole Manion.

In the MDax, Delivery Hero led the pack with a 7.1 percent gain. The food delivery service turned slightly more optimistic regarding its profit target for the current year. Furthermore, Delivery Hero exceeded expectations, particularly with very strong Gross Merchandise Value (GMV), and is showing robust order momentum despite the Middle East conflict, wrote analyst Wassachon Udomsilpa at Canadian bank RBC.

Shares of Gea, Hochtief, Munich Re, Rational, and RTL traded ex-dividend on Thursday./niw/he

--- By Nicklas Wolf, dpa-AFX ---