The DAX 40 fell 0.5% to around 25,870 on Wednesday, the lowest level in a week, mirroring a negative sentiment across European markets. The conflict between the US and Iran over control of the Strait of Hormuz has escalated further, pushing oil prices even higher and fuelling concerns over inflation and interest rates. The US military said it destroyed five Iranian crude oil tankers and sank one of them in retaliation for Tehran's attack on a US warship. Meanwhile, the ECB is widely expected to raise rates by 25 basis points tomorrow, with traders focused on any signals regarding the future path of monetary policy. Energy-intensive industrials and banks were among the hardest hit. Rheinmetall slipped 3%, making it the worst performer, reversing the gains of the prior day.