The Dax opened higher on Wednesday, breaking through its previous all-time high as investors digested growing optimism regarding a diplomatic resolution to the Iran conflict.

The German benchmark’s ascent was bolstered by a synchronized rally in technology shares and a continued decline in crude oil prices, which have eased concerns over supply disruptions in the Middle East.

This marks the latest leg in a sustained upward trajectory for European equities.

The index had previously climbed to record levels on Friday, driven by similar geopolitical de-escalation hopes and strong performance on Wall Street.

The current session’s gains reflect a broadening of that momentum, with traders increasingly pricing in a lower risk premium for energy and shipping costs.

The market’s reaction underscores the sensitivity of European equities to geopolitical risk.