Ibex 35 faces volatility amid Middle East tensions and U.S. economic offensive against Iran

The Ibex 35 has experienced significant volatility due to escalating tensions in the Middle East involving the United States, Israel, and Iran. While some reports noted the index briefly reclaiming the 20,000-point mark during mid-session trading, other sessions saw drops exceeding 2%, marking some of the largest declines of the year.

Geopolitical instability is driven by a major U.S. economic offensive against Iran, described by U.S. Treasury Secretary Scott Bessent as the “largest financial offensive ever orchestrated against an adversary.” In response, Iranian officials have warned that oil exports through the Persian Gulf or the Strait of Hormuz could be halted if the economic warfare persists.

These tensions have directly impacted energy markets and specific sectors within the Spanish stock market. Rising oil prices have pressured airline holdings like IAG, which faced significant losses due to increased kerosene costs and flight cancellations. Retailer Inditex also saw declines due to its regional presence, while the banking sector faced pressure from general risk aversion.