FRANKFURT (dpa-AFX) - The Dax failed to hold onto its gains on Wednesday as it pushed toward record levels. 'The path to new highs remains arduous as long as no diplomatic signals of de-escalation emerge from the Iran conflict,' commented market analyst Timo Emden. Speculation regarding an agreement between the U.S. and Iran failed to materialize.

Reaching an intraday high of nearly 25,395 points, the Dax fell just short of testing the all-time high of 25,507 points set in January. As the tech rally in New York lost steam and Infineon shares slipped into the red, the tailwinds for the German benchmark index dissipated. It ended the session down 0.03 percent at 25,177.80 points. In contrast, the MDax remained up nearly one percent at 33,009.45 points. In Germany, only the small-cap SDax index is currently trading at record levels.

Investors placed little faith in reports concerning the Iran conflict. Iranian media reported that a draft agreement to end the hostilities was on the table. State television described it as a letter of intent stating that U.S. forces would lift the naval blockade and withdraw from waters near Iran. In exchange, Iran would reportedly reopen the Strait of Hormuz to shipping. However, no final agreement has been reached. The White House denied the report, calling it entirely fabricated./tih/jha/