FRANKFURT (dpa-AFX) - The provisional reopening of the Strait of Hormuz electrified the Dax on Friday afternoon. Following a surge of up to 2.6 percent, the German benchmark index, which was already trading in positive territory, closed up 2.27 percent at 24,702.24 points. This performance extended its weekly gain to 3.8 percent, marking its third consecutive week of growth. The index has now nearly recouped all losses sustained since the outbreak of the Iran war in late February. Meanwhile, the MDax index of mid-cap stocks climbed 3.28 percent to end the day at 31,952.10 points.
The Strait of Hormuz, a critical artery for global trade, "will be fully opened to all commercial vessels for the remaining duration of the ceasefire," Iranian Foreign Minister Abbas Araghchi announced in a post on the X platform. U.S. President Donald Trump confirmed the statement. The news significantly dampened recent economic and inflation anxieties, sending oil prices and bond yields tumbling. Markets remained unfazed by Trump's insistence on maintaining a naval blockade for vessels originating from or destined for Iranian ports until negotiations with Tehran are finalized.
Equity markets across Europe and the U.S. also reacted with euphoria to the news. The Eurozone's blue-chip EuroStoxx index headed into the weekend more than two percent higher. Significant gains were also recorded in Zurich, while London managed only comparatively modest advances. In New York, the broad-market S&P 500 and the tech-heavy Nasdaq 100 hit record highs, while the Dow Jones Industrial Average, despite posting substantial gains, remains some distance from its own all-time peak./gl/he
