The German DAX opened roughly 1% lower on Wednesday as investors reacted to a significant escalation in the conflict between the United States and Iran.
The sell-off follows reports that Washington has launched new airstrikes against targets in Iran in retaliation for recent attacks on commercial tankers navigating the Strait of Hormuz.
The renewed military action has immediately weighed on risk sentiment across European markets.
The DAX’s decline marks a continuation of the pressure seen on Tuesday, when the benchmark index traded below the psychologically significant 25,000-point level amid rising energy costs.
The broad-based weakness reflects growing investor anxiety over the potential for further supply chain disruptions and sustained volatility in global energy markets.
Oil prices climbed in the session, driven by fears that the Strait of Hormuz—a critical chokepoint for global crude shipments—could face prolonged instability.