Germany’s DAX tops 26,000 for first time as Iran de-escalation lifts global markets

Global equity markets surged Monday after President Donald Trump announced he had called off planned military strikes against Iran, choosing instead to pursue a rapid diplomatic deal. The decision sent oil prices tumbling and triggered a broad risk-on move that lifted indexes on both sides of the Atlantic.

European Markets Hit Record Highs

Germany's DAX broke above the 26,000-point mark for the first time, closing up 1.45% at 26,001.31 points after reaching nearly 26,100 earlier in the session. The pan-European STOXX 600 rose 0.4% in early trading, with the travel and leisure sector gaining 2.1% while energy stocks fell 2% as crude prices collapsed.globalbankingandfinance+2

Oil futures dropped sharply — with Brent falling more than 5% — as markets priced in reduced risk of further disruption to shipping through the Strait of Hormuz. Brent crude had climbed above $90 a barrel in July on war-related fears, and the sudden pivot to diplomacy rapidly unwound the geopolitical risk premium.cryptoticker+2

Wall Street Joins the Rally

In the United States, Dow Jones Industrial Average futures rose roughly 600 points ahead of the open. The S&P 500 and Nasdaq both gained more than 1% in morning trade, with Amazon Amazon.com, Inc. ↗ 4.58% crossing $3 trillion in market value for the first time. The 10-year Treasury yield fell approximately 6 basis points.qz+1

Trump wrote on Truth Social over the weekend that the "perimeters of a deal" had been reached and urged his administration to finalize an agreement focused on reopening the Strait of Hormuz and addressing Iran's nuclear program. "Get to work, everybody, and get it DONE," he posted.ibtimes+1

Iran Denial Tempers Optimism

However, enthusiasm faded during the afternoon after Iran denied Trump's assertion that negotiations had resumed. Iran's foreign ministry said no talks with Washington were underway, adding that the only discussions taking place were with Oman over management of the Strait of Hormuz. Multiple mediators, including Pakistan, Oman, and Jordan, are reportedly involved in diplomatic efforts, but a leadership vacuum in Tehran following the elimination of several senior officials has complicated the negotiation process.cmcmarkets+1

Markets remain highly sensitive to conflicting headlines. As one CMC Markets analysis noted, the situation is "highly fluid" and could trigger a sharp pullback if the diplomatic momentum stalls.cmcmarkets