German Stocks Tumble as U.S. Considers Iran Strikes
German stocks fell Thursday as rising oil prices and inflation fears surged following reports that the U.S. is weighing military options against Iran.
The benchmark DAX fell 293.07 points, or 1.19%, to 24,811.29 on Thursday, driven by escalating inflation fears and rising interest rates. German 10-year government bond yields rose to 3.538% as markets reacted to geopolitical instability.
The White House requested that the Pentagon develop options for military strikes against Iran before the U.S. midterm elections. While no final decision has been reached, the prospect of conflict caused Brent crude futures to jump 4.3% to $104.50 a barrel. In response to the tensions, oil companies in the Gulf of Mexico began curbing production and evacuating personnel from offshore facilities.
Most major German firms, including Infineon Technologies and Fresenius, recorded losses during the downturn. However, SAP and Rheinmetall saw modest gains amid the broader market decline.
