Daily Briefing — March 25, 2026

Headlines

Markets Rally as Trump De-escalates Iran Tensions

• The News: President Trump announced a pause on military strikes against Iran’s energy infrastructure. The market reaction was immediate: the DAX jumped 1,200 points on Monday, while oil prices plummeted by up to 14%.
• Why it matters: The escalating Iran conflict has been a massive weight on energy and financial markets for weeks. Even a temporary cooling of tensions provides a huge sigh of relief for the global economy and completely shifts the risk assessment for investors.

Two Arrested in Espionage Case

• The News: The Federal Public Prosecutor’s Office has arrested a man and a woman on charges of espionage. No further details about their alleged handlers or the specifics of the accusations have been released yet.
• Why it matters: With geopolitical tensions on the rise, Germany is seeing an uptick in spy cases. This is just the latest in a series of security breaches that have kept officials and politicians on high alert for months.

Merz Pushes for Tax Relief in Coalition Talks

• The News: CDU leader and chancellor-designate Friedrich Merz insists that any coalition deal between the Union and the SPD must prioritize reducing the burden on households and businesses. These talks are now entering a make-or-break phase.
• Why it matters: Economic relief is the biggest sticking point in the negotiations. With the economy stalling and energy costs still biting, how the government handles taxes and levies is the number one issue for the public.

Green-CDU Talks Kick Off in Baden-Württemberg

• The News: The Greens and the CDU have begun formal exploratory talks to form a state government in Baden-Württemberg. They’re diving straight into finance, climate, and economic policy, though tensions could flare up quickly.
• Why it matters: Baden-Württemberg is a powerhouse of the German economy. Whatever coalition comes out of this—and whatever policies they agree on—will send ripples far beyond the state borders.

Munich Elects Green Mayor

• The News: It’s official: Munich has a new Green mayor. Political scientist Ursula Münch credits the win to the candidate’s pragmatic approach and the city’s unique voter base.
• Why it matters: As one of Germany’s most important cities, having a Green mayor in what was once CSU heartland is a massive signal that the political landscape in Bavaria is shifting.

Global Spotlight on Rheinland-Pfalz and Orban

• The News: International outlets are buzzing about the state election in Rheinland-Pfalz and Viktor Orbán’s ongoing blockade of EU financial aid to Ukraine.
• Why it matters: Orbán’s stance is jeopardizing Europe’s support for Ukraine at a critical moment in the conflict. Meanwhile, the world is watching the Rheinland-Pfalz results as a litmus test for the mood of the German electorate.

Business & Markets

DAX Surges as Oil Prices Crater

Trump’s move to pause attacks on Iran’s energy sector sent stocks into a frenzy on Monday, March 23. The DAX climbed 1,200 points, while crude oil shed 14% of its value. It was a massive single-day swing that shows just how much the "war risk premium" has been hanging over the market lately.