(Correction in the fourth paragraph, first sentence: Analyst Jochen Stanzl is with Consorsbank.)

FRANKFURT (dpa-AFX) - Renewed geopolitical tensions surrounding Iran weighed on equity markets this Friday. The Dax fell 0.86 percent to 24,452 points in early trading, drifting further away from the psychological 25,000-point threshold, which it had briefly surpassed mid-week for the first time since the outbreak of the Iran conflict.

The MDax, which tracks mid-cap stocks, eased by 0.47 percent to 31,414 points on Friday. Meanwhile, the Eurozone's blue-chip EuroStoxx 50 index shed 1 percent.

The fragile ceasefire between the U.S. and Iran is currently being tested: following Iranian attacks on three U.S. destroyers in the Strait of Hormuz, the U.S. military launched retaliatory strikes against targets within the Islamic Republic. Following these strikes, U.S. President Donald Trump reiterated threats against Iran, urging the country to 'quickly' sign a peace agreement. However, he noted that the month-long ceasefire remains in effect. Oil prices rose on the news.

Analyst Jochen Stanzl of Consorsbank noted growing risks for a market that has recently been driven by AI and an increasing sense of complacency, warning that these risks could escalate if the Iran conflict remains unresolved.

Ahead of the weekend, the U.S. non-farm payrolls report is expected to draw significant attention this afternoon. The data will provide insights into the health of the U.S. economy and remains a critical factor for the Federal Reserve's future monetary policy. Given the recent uptick in inflation, investors should pay close attention to wage growth, noted market expert Thomas Altmann of asset manager QC Partners.

After several hectic days, the earnings season slowed its pace on Friday. Commerzbank, currently in the spotlight due to a takeover bid from Italy's UniCredit, released its quarterly results. While the Frankfurt-based lender raised its guidance, its Dax-listed shares nonetheless fell by 1.7 percent. Analysts at the Canadian bank RBC described the new targets as ambitious.

Within the MDax, beverage bottling equipment manufacturer Krones, IT service provider Bechtle, and specialty chemicals group Evonik reported on the past quarter. Bechtle shares climbed 3.7 percent, with Jefferies praising a strong start to the year fueled by robust demand from the German public sector. Evonik shares rose by 1.7 percent, while Krones saw a moderate decline.

Rheinmetall remained under significant pressure following the previous day's slump, dropping another 3.5 percent. This accelerates a downward trend that has been in place since January. JPMorgan analyst David Perry slashed his price target from 2,130 to 1,500 euros and downgraded the stock from 'Overweight' to 'Neutral'./ajx/jha/mis