Global equity markets faced renewed pressure on Monday as geopolitical risks in the Middle East intensified.
The DAX, which had recently traded in a narrow range near 25,126 points, is now testing the psychological 25,000 level as investors reassess risk exposure.
5% to 24,995 points on Tuesday, driven by strong international momentum, before consolidating in a tight range over the weekend.
The immediate catalyst was the announcement by US President Donald Trump of a new blockade on Iranian ports.
The move has triggered a sharp rise in oil prices, with Brent crude climbing on supply disruption fears.
Higher energy costs are weighing on corporate profit expectations and dampening sentiment across European and US exchanges.
This development marks a significant shift from the cautious optimism seen earlier in the week.
The DAX had surged 1.5% to 24,995 points on Tuesday, driven by strong international momentum, before consolidating in a tight range over the weekend. The sudden escalation in geopolitical risk has reversed that trend, forcing traders to hedge against potential supply shocks and broader market volatility.