Markets fall sharply and oil rises due to the breakdown of the ceasefire with Iran

BarcelonaAfter a few days of calm and records, turbulence returns to the stock markets. The announcement by the US President, Donald Trump, that the ceasefire with Iran is over has caused an avalanche of sales and declines in all European stock markets.

The Ibex-35, the main benchmark in Spain, is down more than 2%, more than 500 points and on the verge of falling below 19,000 points, with a strong downward trend. The session had started with slight losses, but once Trump's words were pronounced, the falls intensified.

Significant gains are only recorded in Repsol, Enagás, Solaria, Iberdrola and energy-related stocks, given the new escalation in oil prices. The Brent barrel, the benchmark in Europe, has risen by more than 6% in the early stages of the session.

To all this is added that the US Treasury Department has withdrawn the exemption that allowed Iran to sell its oil.

"If energy prices rise due to the resumption of geopolitical tensions, the recent moderation in inflation expectations could quickly reverse, and this would force investors to rethink their expectations regarding more restrictive central banks," comments Ipek Ozkardeskaya, senior analyst at Swisquote.

In fact, the uncontrolled general price level is one of the main concerns of analysts. The moderation in oil prices in recent weeks had generated positive expectations from investors, who were leading the purchase of shares. With Trump's announcement about Iran, the trend has completely reversed.