Frankfurt’s DAX 40 closed marginally down at 25,407 on Monday, as investors weighed the potential for diplomatic progress in the US-Iran conflict, while bracing for key economic data due later this week. Surging oil prices put renewed pressure on sovereign bonds after US President Trump rejected Iran’s peace proposal, fueling inflation concerns. Nevertheless, negotiations are set to continue. Meanwhile, ECB President Christine Lagarde, in an address to the European Parliament’s Committee on Economic and Monetary Affairs, defended “moderate” interest rate hikes in response to rising inflation. Rheinmetall led losses among stocks, down 1.3%, followed by Volkswagen, Deutsche Telekom, SAP and Hochtief, falling between 0.9%-1.2%.