The expectation of a possible end to the conflict in the Middle East has unleashed euphoria in financial markets this Wednesday. The Ibex 35 has risen by more than 3% in the early stages of the session and remains with gains close to 2.8%, standing at around 17,580 points, in line with the upward trend of the rest of the European stock markets.
The momentum coincides with the sharp drop in oil. Brent crude, which in recent weeks had rebounded sharply due to geopolitical tension, is now trading below 100 dollars, easing pressure on energy costs and favoring risk appetite among investors.
Optimism comes after the statements by the US president, Donald Trump, who has pointed to a possible end of the offensive against Iran within two or three weeks. This scenario has contributed to improving confidence after five weeks of conflict that had shaken both energy and stock markets.
Despite the optimism, tension has not disappeared. During the early hours, Iranian drones have attacked energy infrastructures in the Persian Gulf, including fuel tanks at Kuwait International Airport. Furthermore, the United Arab Emirates has shown itself willing to collaborate to reopen the Strait of Hormuz even by force, which reflects that the conflict remains open.
In the Spanish market, rises extend to almost all Ibex 35 stocks, with the exception of Repsol, which falls close to a 5% dragged down by the decline in crude oil. The strong rises of IAG, Banco Santander, ArcelorMittal and ACS stand out, all above 5%, while entities such as BBVA, CaixaBank, Bankinter, Sabadell or Unicaja register advances above 3%.
