Trump's announcement to block Hormuz sends oil to $100 and shakes European stock markets
The price of a barrel of Brent returns to 100 dollars after the failure of negotiations with Iran, while the Ibex-35 leads losses in Europe
BarcelonaMonday of strong tension in international financial markets. The failure of peace negotiations between Iran and the United States during this weekend has transferred geopolitical tension directly to the trading floors, which have once again turned red. Donald Trump's order to block the Strait of Hormuz –and his direct threat to sink any Iranian ship that ignores the siege– has set off all alarms about global supply.
The reaction of energy markets has been immediate and forceful. The price of a barrel of Brent, the benchmark in Europe, has risen by 6% to once again break the psychological barrier of 100 dollars. This bullish wave has also spread to natural gas: in the Dutch TTF market, the price has risen by almost 6% and is now trading at 46.43 euros per megawatt hour (MWh).
The Ibex-35 leads the losses in Europe
As has been usual since the conflict with Iran broke out, the fear of an energy crisis has punished the stock markets: while the price of crude oil rises, investor confidence falls, closing a day of widespread losses in the main global indices.
The main Spanish index led the declines on the continent with a drop of 0.99%, closing the session at 18,023.80 points. Despite the correction, the Madrid stock exchange has not lost the psychological level of 18,000 points after having chained three consecutive weeks of gains. Among the stocks that have led the fall, Inditex (2%); Santander (1.58%) and Iberdrola (1.43%) stand out. In this line, the airline holding IAG has fallen by 1.17% and Aena by 1.94%, two stocks closely related to tourism affected by the new escalation of tension between the United States and Iran.
As for the rest of the European stock markets, although they started the session with more pronounced falls, they closed flat: the German DAX fell by 0.23%; the Milan stock market by 0.17%; London by 0.17% and the French CAC by 0.29%.
While Asian stock markets had already closed with very slight losses, Wall Street showed a mixed sign. US investors are awaiting the earnings season: Goldman Sachs has opened the fire with a 19% higher profit, although its shares have received the news with falls. The market fears that the rise in energy prices will end up taking a toll on the costs and sales of the large companies in the S&P 500.
Fixed income and currencies
Fixed income also moves positions: the yield on the German bund is already approaching 3.10%, while the 10-year Spanish bond already exceeds 3.50%. In the United States, the 10-year US Treasury bond remains above 4.30%. Regarding the foreign exchange market, the euro is losing ground and drops below the level of 1.17 dollars. Gold follows the downward trend of recent weeks and moves away from 4,800 dollars per ounce, losing 0.50%.
