Stock markets plummet amid the risk of a protracted conflict with Iran
The Ibex 35 fell by more than 5% in a day dominated by nervousness and selling, while oil experienced a further rise of 7%, reaching $83.
BarcelonaOn Monday the blow seemed less severe, although the trading session ended with losses, but this Tuesday the stock markets plummeted. The Ibex 35, the main benchmark of the Spanish stock market, fell by more than 5% and dropped below the 17,000-point level, after reaching record highs well above 18,000. The only stock managing to gain ground was Repsol, with a 2% advance. The rest of the Ibex stocks accumulated declines. The messages coming from the White House regarding the conflict with Iran, far from calming the situation, have made investors more nervous, who anticipate a longer conflict than expected.
The attacks by the US and Israel, on one side, and those by Iran, on the other, show no signs of abating and have been closed de facto The Strait of Hormuz, through which oil and gas flow to satisfy a large part of global demand, especially that of China and other Eastern countries, is at risk. Analysts detect "significant" risks of an escalation of the war throughout the Middle East and of its duration.
In today's session, losses have been gaining ground and the boards are turning red. The other European markets are also experiencing a day dominated by selling. The Euro Stoxx 50, which includes the largest stocks in the Old Continent by market capitalization, summarizes the overall picture with a decline of more than 3%. The trend continues across the Atlantic and reinforces what futures indicated before the opening of the Dow Jones, the main benchmark of Wall Street, in the US, with a decline of around 2%.
"There are significant risks of escalation and duration" of the conflict with Iran, according to experts. The price of Brent crude, the European benchmark, has climbed above $83 a barrel, with an increase exceeding 7% today. Meanwhile, the price of natural gas has risen by over 40% following the confirmation of the closure of the Strait of Hormuz, through which 20% of the world's oil and gas passes. All of this suggests that electricity prices will also rise. In this context, the euro is losing value against the dollar, falling to around $1.15, as the US currency regains its status as a safe haven in times of uncertainty, as does gold, which, nevertheless, saw its value fall by more than 5% on Tuesday.