Global financial markets surged on Monday after the United States and Iran reached a framework agreement to end hostilities in the Middle East and reopen the Strait of Hormuz, a critical passage for global energy and trade flows.
Investor sentiment turned sharply positive across Europe and beyond, with Spanish equities among the strongest performers. The Ibex 35 broke decisively above the 19,000-point level, climbing to 19,122 points and edging close to fresh all-time highs. The benchmark index has now gained roughly 10% since the start of the year, reflecting renewed confidence in global growth prospects after months of geopolitical uncertainty.
The agreement between Washington and Tehran effectively ends a period of military escalation that had rattled energy markets and raised fears of prolonged supply disruptions. At the centre of the deal is the immediate reopening of the Strait of Hormuz, a strategic shipping corridor through which roughly one-fifth of the world’s oil supply passes, along with significant volumes of commercial goods.
The reopening has already triggered a sharp reaction in commodity markets. Brent crude fell more than 4% ahead of trading on Monday, extending a recent downward trend as traders priced in the return of disrupted supply. Although prices remain above pre-conflict levels, the decline marks a significant easing of inflationary pressure that had built during the months of tension.
In Spain, sector-wide gains reflected the shift in market sentiment. Tourism and airline stocks led the advance, with companies such as IAG rising close to 5%, supported by expectations of lower fuel costs and stronger travel demand heading into the summer season. Hotel group Meliá and travel technology firm Amadeus also posted notable gains.
Banking shares contributed heavily to the Ibex rally, with BBVA up 3.14%, Banco Santander gaining 3.48%, and CaixaBank advancing 1.18%, as investors grew more optimistic about credit conditions and economic stability. Industrial and consumer-facing firms also benefited, with Inditex up 2.07%, while utilities and telecoms saw more modest gains.
Across Europe, the positive momentum was broadly shared. Germany’s DAX, France’s CAC 40 and the Euro Stoxx 50 all opened higher, reflecting widespread relief that a major geopolitical risk to global growth appears to be easing.
The market reaction highlights how closely financial assets remain tied to geopolitical developments, with investors quickly reassessing risk as the prospect of stabilised energy flows and reduced regional tension returns to the forefront.
