Stock markets plummet amid the risk of a protracted conflict with Iran

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 4% and the 17,000-point level is at risk, after having reached record highs well above 18,000. The only stock managing to gain ground was Repsol, with a 0.5% 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 Asian countries, is a major concern. Analysts detect "significant" risks of an escalation and prolonged conflict throughout the Middle East.

In today's session, losses have been gaining ground, and the stock markets are turning red. Other European markets are also experiencing a day dominated by selling. The Eurostoxx 50, which tracks the largest companies in Europe by market capitalization, reflects this trend with a decline of more than 3%. The outlook is not positive across the Atlantic, as Dow Jones futures, the main benchmark for Wall Street in the US, point to a decline approaching 2%.

"There are significant risks of escalation and longevity" 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% so far today. Meanwhile, the price of natural gas has risen by more than 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.