The Ibex 35 smashed through the 19,000-point mark Monday, reaching an all-time high of 19,122 points, as international markets cheered a peace agreement between the United States and Iran. The Spanish blue-chip index is now up roughly 10% year-to-date.
The bilateral deal immediately reopens the Strait of Hormuz, a critical logistical chokepoint for one-fifth of the world’s oil supply. The end of the blockage sent Brent crude prices down more than 4% before the opening bell, easing fears of a new inflationary crisis.
Tourism and airline stocks led the rally. IAG surged nearly 5%, while Meliá Hotels and Amadeus posted steep gains on lower fuel costs and renewed geopolitical stability. Financial heavyweights BBVA and Banco Santander rose over 3%, benefiting from fading recession fears.
The bullish sentiment spilled across Europe. The Dax in Frankfurt, Paris’s CAC 40, and the Euro Stoxx 50 all opened with strong gains, relieved that a major threat to global economic growth has been removed.