FRANKFURT (dpa-AFX) - The celebratory mood seen among investors on Friday has given way to a Monday morning hangover. After reports regarding the reopening of the Strait of Hormuz propelled the Dax above 24,700 points ahead of the weekend, the index is retreating once again on Monday following Iran's decision to re-close the vital global trade artery. Broker IG signaled a 1.3 percent drop for the German benchmark index to 24,383 points, less than two hours before the Xetra open.
Shortly after U.S. President Donald Trump signaled a willingness to negotiate with Tehran, the U.S. military targeted an Iranian freighter. Trump stated on the Truth Social platform that the vessel had attempted to breach the U.S. naval blockade. With the ceasefire set to expire on Wednesday, Tehran sees "no promising outlook for serious negotiations" with the U.S., according to the state news agency IRNA.
"Everything the markets celebrated on Friday is currently null and void," wrote market expert Thomas Altmann of QC Partners. "The situation in the Strait of Hormuz remains volatile. Furthermore, it is currently unclear when the U.S. and Iran will resume talks." The period of uncertainty is being extended, and the normalization of energy markets is being pushed further down the road./ajx/stk
