Germany's blue-chip DAX index extended its losing streak, closing 2.35% lower on Wednesday, as renewed US-Iran conflict dragged the vast majority of its constituents.
Following recent shipping attacks in the Strait of Hormuz, US forces struck over 80 Iranian targets, including air defense systems, command networks, and missile capabilities. This military action was paired with a US Treasury decision to revoke an Iranian oil-sale waiver. In response, Iran's Revolutionary Guards said they targeted US military bases in Bahrain and Kuwait.
After these latest attacks, US President Donald Trump said the interim memorandum of understanding with Iran was "over," signaling an unwillingness to pursue further diplomacy with Tehran.
"The developments have reignited concerns about energy supplies and geopolitical risk, helping Brent crude rise more than 2% and trade near $76 [per barrel] this morning after rising more than 5% yesterday, driven by the fresh attacks on ships in the Strait of Hormuz, with Monday seeing the most incidents since the US-Iran interim agreement came into effect on June 17," Deutsche Bank Research said.
Meanwhile, the International Monetary Fund cut its growth forecasts for Germany and the euro area, citing the impact of the Middle East war on energy prices and consumer confidence, as well as the accelerating global technology cycle. The IMF now expects Germany's economy to expand 0.7% in 2026 and 1% in 2027, down from its April forecasts of 0.8% and 1.2%, respectively, while lowering its 2026 eurozone growth projection to 0.9% from 1.1%. It left its 2027 eurozone forecast unchanged at 1.2%.
In corporate news, Mercedes-Benz Group (MBG.F) reported first-half sales of 1,011,500 cars and vans, marking a 6% decline from a year ago. Car sales fell 7% to 837,200 units, while van deliveries slid 1% to 174,300 units. The German automotive company shed 4.18% at closing.
Meanwhile, Berenberg increased its price target and earnings forecasts for the buy-rated Scout24 (G24.F) on the artificial intelligence-supported growth outlook.
"We strongly believe that instead of a headwind, artificial intelligence (AI) can provide a tailwind for real estate classifieds in general, and for Scout24 in particular. We believe that Scout24 is at the forefront of AI innovation. As such, we overhaul our mid- and long-term outlook for the company, as we expect accelerating revenue and earnings growth driven by AI initiatives. We raise our 12-month price target to EUR140 [from EUR100] but see the potential for the shares to more than double to EUR180 on a three-year investment horizon," the research firm wrote. The German real estate portal operator ended the session 1.50% in the red.