The DAX climbed 1.11% to open at 25,912.59 points on Monday, surpassing its previous all-time high for the first time.
The German benchmark’s record-breaking start was driven by a sharp improvement in investor sentiment following reports that the United States and Iran are moving closer to a formal peace agreement.
The rally reflects a broadening risk appetite across global markets, with US equities also advancing on the news.
After falling just short of the record level on Friday, investors are now pricing in a de-escalation of geopolitical tensions that have weighed on markets for weeks.
The prospect of a diplomatic resolution has removed a significant overhang, allowing capital to flow back into equities.
This development marks a notable shift from the heightened uncertainty that characterized the previous trading week.