German Stocks Tumble As Middle East Tensions Weigh

German stocks slid Monday morning as the Germany 40 index fell about 1.35% amid renewed Middle East tensions after talks between the U.S. and Iran broke down and an Iranian vessel was seized. The geopolitical risk — and a closure of the Strait of Hormuz — revived inflation and interest-rate concerns, weighing on the benchmark and many large-cap names. SAP led declines (-3.4%) while several industrials and banks (MTU Aero Engines, Deutsche Bank, Volkswagen, Siemens groups, Mercedes‑Benz, Continental) slipped 2–3%. Defensive/utility names such as RWE and exchanges and insurers (Deutsche Boerse, E.ON, Commerzbank, Hannover Re) saw gains. Economic data were mixed: Germany’s producer prices showed a much smaller annual fall in March (-0.2%) and a monthly rise (+2.5%), while Eurozone exports continued to contract (-6.7% YoY in February). Overall the piece frames the move as risk‑off selling driven by geopolitical spillovers and shifting macro inflation signals.