German stocks tumbled on Friday as heightened tensions in the one of the world's largest crude-producing region dent investors' appetite for risk.
Iranian Major-General Qassem Soleimani, architect of the country's spreading military influence in the Middle East, was killed in the air strike at Baghdad airport, prompting a vow of harsh revenge from Iran's Supreme Leader Ayatollah Ali Khamenei.
The benchmark DAX was down 127 points, or 0.95 percent, at 13,258 after rallying 1 percent the previous day.
In economic releases, Germany's unemployment rate remained unchanged in November, data from Destatis revealed today. The jobless rate held steady at seasonally adjusted 3.1 percent in the month.
On an unadjusted basis, the unemployment rate rose marginally to 3.1 percent from 3 percent a month ago.
According to results of the labor force survey, 1.36 million people were unemployed in November, down 43,000 from the same month a year earlier.