FRANKFURT (dpa-AFX) - The German equity market closed with modest losses on Monday, as indices staged a significant recovery from intraday lows despite elevated oil prices. Support emerged in the afternoon session following a resilient performance on Wall Street.

"Peace talks between the U.S. and Iran have not collapsed at this stage," even if they have "yet to produce a viable outcome," noted Thomas Altmann, portfolio manager at QC Partners. Furthermore, the ceasefire appears to be holding, although the situation remains fluid, added Andreas Lipkow, chief market analyst at CMC Markets.

The blue-chip Dax, which had slumped by more than one percent at one point, finished down 0.26 percent at 23,742.44 points. The mid-cap MDax pared its losses to 0.43 percent, closing at 30,251.91 points. A similar trend was observed across European markets.

The Eurozone's benchmark EuroStoxx 50 ended the session 0.36 percent lower at 5,905.02 points, while losses in London and Zurich also narrowed to moderate levels. In the U.S., the Dow Jones Industrial Average was trading 0.5 percent lower at the European close, while the tech-heavy Nasdaq 100 managed to edge into positive territory.

Direct negotiations between the U.S. and Iran in the Pakistani capital, Islamabad, concluded without tangible results. Consequently, U.S. President Donald Trump announced a blockade of vessels entering or leaving Iranian ports in the Strait of Hormuz, effective Monday afternoon (CEST). The move is intended to prevent Iran from charging shipping companies transit fees through the strait and to sever the country's oil revenues. Iran remained defiant, dismissing the move as a bluff and issuing its own counter-threats.

The price of a barrel (159 liters) of North Sea Brent crude for June delivery reacted promptly to the announced naval blockade. It climbed back above the 100 U.S. dollar mark overnight and remained above that level in recent trading.

As rising oil prices weigh on jet fuel costs, aviation stocks came under pressure. Shares of airport operator Fraport tumbled 4.5 percent to the bottom of the MDax, while Lufthansa sank 2.2 percent. Lufthansa investors also had to contend with a new round of pilot strikes. Shares in tour operator Tui declined by 1.6 percent.

Deutsche Bank and Commerzbank shares showed little reaction to mixed quarterly results from Goldman Sachs. The U.S. investment bank kicked off the Q1 2026 earnings season; while profits exceeded expectations on the back of strong investment banking, the fixed income, currencies, and commodities (FICC) division disappointed. Deutsche Bank lost 0.8 percent, while Commerzbank shed 0.5 percent.

Analyst commentary also moved the MDax: Nemetschek shares fell 2.8 percent, weighed down by a "Sell" recommendation from UBS. Analyst Michael Briest highlighted risks associated with the construction software specialist's long-term contracts.

Aixtron dropped 3.7 percent after Deutsche Bank Research analyst Michael Kuhn downgraded the stock from "Buy" on valuation grounds. He noted that the share price had surged by more than 30 percent since his early March recommendation and has more than doubled since the start of the year.

In the SDax, MBB gained 2.6 percent. The investment firm increased its share buyback program and extended its duration./ck/he

--- By Claudia Müller, dpa-AFX ---