The Spanish benchmark index slipped below the 18,000-point mark at the open, accumulating a weekly decline of more than 600 points, or over 3.5%, which brings it back to its lowest levels since April 7.
Markets are showing signs of jitters over the lack of progress toward a lasting peace in the Middle East, while the ongoing confrontation between Iran and the United States has rendered navigation in the Persian Gulf nearly impossible.
On Wednesday, Iran seized two container ships attempting to exit the Gulf through the Strait of Hormuz, tightening its grip on this crucial waterway, while investors remain watchful over whether the region's fragile ceasefire will hold.
In parallel, security and shipping sources indicate that the U.S. military has intercepted at least three Iranian-flagged tankers in Asian waters and is diverting them from their positions near India, Malaysia, and Sri Lanka.
Beyond the geopolitical spiral, the European session is marked by intense corporate activity, with a flurry of earnings releases and PMI business activity surveys in both Europe and the United States.
On the corporate front, companies across various sectors, from consumer goods to travel and mining, have voiced caution, warning that the conflict in the Middle East is driving up costs, disrupting supply chains, and damaging consumer confidence, thereby clouding the financial outlook.
Furthermore, governments have begun to sound the alarm regarding the impact that rising energy prices are having on their respective economies.
Brent crude futures rose another 1.4% this Thursday to 103.3 dollars per barrel, after rallying 3.5% on Wednesday to move back above the 100-dollar threshold.
In Spain, Bankinter shed 2.47% after reporting its first-quarter figures. The bank's net profit increased by 8% compared to the same period in 2025, driven by higher fees and lending growth amid solid economic expansion in its domestic market.
Analysts at brokerage Renta 4 highlighted Tesla's report, noting that it "beat EPS expectations ($0.41 vs. $0.34 est.) despite sales weakness," and saw an "initially positive after-market reception (+3%), though the stock ended flat after the announcement of accelerated Capex for its transition into a robotics and AI company."
Meanwhile, Bankinter analysts noted that "corporate results have been mixed early on, with upbeat guidance from names like LAM Research, STMicro, or Nestle, but some disappointment in cases such as Tesla, IBM, or EssilorLuxottica."
These experts suggest that, in short, it is a "session of slight declines in the face of rebounding crude prices and pending news regarding the reopening of negotiations in the Middle East."
As of 0702 GMT on Thursday, the Spanish IBEX 35 was down 154.40 points, or 0.86%, at 17,852.00 points, while the pan-European FTSE Eurofirst 300 index retreated by 0.49%.
In the banking sector, Santander lost 0.99%, BBVA fell 1.29%, Caixabank shed 0.99%, Sabadell dropped 0.43%, and Unicaja Banco lost 0.73%.
Among large-cap non-financial stocks, Telefonica gained 0.71%, Inditex retreated 0.90%, Iberdrola shed 0.50%, Cellnex rose 0.56%, and oil major Repsol climbed 0.71%.
(Reporting by Tomas Cobos; editing by Benjamin Mejias Valencia)
