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DAX Slips As Oil Stays High And Trump Extends Iran Ultimatum

Supply risks in the Strait of Hormuz keep inflation fears elevated despite the extension.

Overview

  • The German DAX turned lower after the open to about 22,552 points, reversing a firmer start that brokers had signaled ahead of trade.
  • President Donald Trump extended his deadline to Iran to April 6, saying the US would pause strikes on Iranian power plants until then.
  • Brent crude traded near $107 to $108 a barrel, and ING’s Ewa Manthey estimated about 8 million barrels per day of output are already offline.
  • Iran sent mixed messages as it denied talks with the US even as it signaled it would examine proposals and Pakistan said it was mediating.
  • An EY study showed revenues at Germany’s largest listed companies fell for a third straight year, highlighting how higher energy costs could squeeze manufacturers and raise the risk of recession in Europe.