Ibex 35 falls below 19,000 points amid oil surge and French debt concerns

The Spanish Ibex 35 index dropped 2.12% to close at 18,913.50 points, falling below the 19,000 mark. The decline was driven largely by the banking sector, specifically Bankinter, which saw its shares plunge 7.56% after reporting quarterly revenues that missed market expectations despite an 11% increase in net profit.

Global market volatility was exacerbated by rising oil prices, with Brent crude exceeding $111 per barrel. This surge follows geopolitical tensions in the Gulf, including reported Houthi insurgent attacks on Saudi Aramco oil infrastructure and Iranian Revolutionary Guard operations involving oil tankers in the Persian Gulf.

Additionally, investor anxiety was fueled by rising risk premiums in France, which exceeded 170 basis points, the highest levels since 2011. The yield on French 10-year bonds reached approximately 5%, the highest since 2002, raising concerns regarding the sustainability of French public finances.