FRANKFURT (dpa-AFX) - The renewed closure of the Strait of Hormuz, a critical artery for oil transit, triggered sharp losses on the German stock market on Monday. The Dax retraced a portion of Friday's robust gains, closing 1.15 percent lower at 24,417.80 points. The MDax, tracking mid-cap stocks, shed 1.40 percent to finish at 31,505.32 points. Meanwhile, oil prices saw a significant resurgence.
The geopolitical situation in the Middle East remains fraught with difficulty. After Iran had announced before the weekend that it would open the strait for the remainder of the ceasefire through Wednesday, it rescinded the decision the following day. Tensions are primarily fueled by the United States' naval blockade in the Strait of Hormuz. On Sunday, the U.S. Navy attacked and seized control of an Iranian freighter in the area, prompting Iran to suspend further negotiations with the U.S. for the time being.
In the afternoon, U.S. President Donald Trump stated that an extension of the ceasefire was "very unlikely." Furthermore, he declared that he would not lift the blockade of the Strait of Hormuz until a deal is signed. Nevertheless, he announced that Vice President JD Vance would travel to Pakistan this Monday for further negotiations./edh/he
