The positive tone across Asian and European equity markets was supported by reports that Washington is seeking a month-long ceasefire and has reportedly sent Tehran a 15-point plan for discussion.
The session, however, remained characterized by the volatility that has dominated markets since the conflict erupted in late February, amid swings of contradictory information regarding a potential diplomatic exit.
U.S. President Donald Trump stated on Tuesday that his country is making progress in negotiations to end the war, including securing a major concession from Tehran.
Nevertheless, caution continued to prevail, as Tehran denied that any direct talks had taken place. On Wednesday, the official IRNA news agency carried comments from an armed forces spokesperson asserting that the United States is "negotiating with itself."
In the oil market, relief was only partial. Prices retreated by around 4%, although Brent remains 35% above its pre-war level, hovering around 100 dollars per barrel. Consequently, concerns persist regarding the economic impact of rising energy costs.
The lack of clarity over if -- or when -- exports from the Persian Gulf can resume, coupled with signs that the crude rally is already causing economic damage, has so far tempered the market reaction to Trump's conciliatory gestures.
In parallel, investors remain focused on inflation and the response from central banks. Markets continue to bet on several rate hikes in Europe, the United Kingdom, Japan, and Australia in the coming months, and are no longer pricing in rate cuts in the United States.
At 0815 GMT on Wednesday, the Spanish benchmark IBEX 35 was up 240.70 points, or 1.42%, at 17,150.90 points, while the FTSE Eurofirst 300 index of leading European shares advanced 1.32%.
In the banking sector, Santander rose 2.05%, BBVA gained 2.46%, Caixabank advanced 1.72%, Sabadell climbed 1.41%, Bankinter appreciated by 1.93%, and Unicaja Banco rose 2.22%.
Among the large-cap non-financial stocks, Telefónica gained 0.52%, Inditex advanced 1.49%, Iberdrola rose 0.54%, Cellnex fell 1.40%, and the oil major Repsol shed 0.77%.
Grifols stood out, with its shares surging as much as 8% following news that the company intends to list its U.S. biopharmaceutical subsidiary.
(Reporting by Tomás Cobos; editing by Benjamín Mejías Valencia)
