German Shares Fall as US-Iran Tensions Reignite

Germany's blue-chip DAX index extended its losing streak, closing 2.35% lower on Wednesday, as renewed US-Iran conflict dragged the vast majority of its constituents. Following recent shipping attacks in the Strait of Hormuz, US forces struck over 80 Iranian targets, including air defense systems, command networks, and missile capabilities. This military action was paired with a US Treasury decision to revoke an Iranian oil-sale waiver. In response, Iran's ​Revolutionary Guards said they targeted US military bases in Bahrain and Kuwait. After these latest attacks, US President Donald Trump said the interim memorandum of understanding with Iran was "over," signaling an unwillingness to pursue further diplomacy with Tehran. "The developments have reignited concerns about energy supplies and geopolitical risk, helping Brent crude rise more than 2% and trade near $76 [per barrel] this morning after rising more than 5% yesterday, driven by the fresh attacks on ships in the Strait of Hormuz, with Monday seeing the most incidents since the US-Iran interim agreement came into effect on June 17," Deutsche Bank Research said. Meanwhile, the International Monetary Fund cut its growth.