On Friday, the DAX started trading steadily but quickly moved into positive territory. The index benefited from the announcement by Iran’s Abbas Araghchi that the Strait of Hormuz would remain open to all ships during the ceasefire. This news triggered a sharp rise in prices, with the index closing at 24,702.24 points, up 2.27 percent.
Oil prices, however, fell sharply, surprising market analysts. Timo Emden of Emden Research noted that the stock market remains remarkably stable despite ongoing uncertainties in the Middle East. The DAX has recovered more than 9 percent since the end of March, but is still about four percent below its level at the end of February, before the start of the Iran war.
Investors are optimistic that the ceasefire between the US and Iran will hold for now and could lead to a phase of political détente. Pakistan is already planning further negotiations between the two countries in Islamabad.
Source: Tagesschau
