The DAX index dropped 1.2% as geopolitical tensions and inflation fears weigh heavily on investors.

The DAX index fell by 1.17% to 26,258 points at the start of the week, pressured by renewed military actions in the Persian Gulf and concerns over rising interest rates. Despite this decline, the index still shows a monthly gain of 2.45%.

The U.S. military’s recent strikes in Iran have escalated tensions, leading to a spike in oil prices, with Brent crude reaching $90.50 per barrel. Meanwhile, U.S. markets opened lower, reflecting the ongoing geopolitical instability. Analysts warn that rising interest rates could shift investments from stocks to bonds, further impacting the market.