Spain’s IBEX 35 Hits Record High as Markets Welcome U.S.-Iran Peace Agreement

MADRID — Spain’s stock market reached another all-time high on Wednesday, with the benchmark IBEX 35 surpassing 19,400 points after gaining 1.35%, supported by investor optimism following the announcement of a 14-point peace agreement between the United States and Iran and ahead of the U.S. Federal Reserve’s policy decision.

The IBEX 35 rose 258.3 points to close at 19,421.9, extending its year-to-date gain to 12.21%. The index had already reached a record high in the previous session.

After opening above 19,150 points, the market traded largely flat through the morning before accelerating higher. A fresh wave of buying during the afternoon pushed the index above the 19,400-point threshold and to a new intraday record.

Infrastructure and renewable energy companies led gains, with Acciona rising 4.53% and Acciona Energía adding 3.38%. Spain’s banking sector also performed strongly, advancing 2.46% overall.

Bankinter gained 2.83%, followed by CaixaBank (+2.64%), Unicaja (+2.63%), BBVA (+2.56%), Banco Sabadell (+2.48%) and Santander (+2.25%).

According to XTB analyst Javier Cabrera, banking stocks had been weighed down by geopolitical tensions but began to recover following news of the peace agreement. Lower bond yields could help stimulate credit demand, while attractive shareholder returns continue to support the sector.

On the downside, ArcelorMittal fell 2.4%, while Fluidra and Colonial declined 1.44% and 1.05%, respectively.

Most of Spain’s blue-chip stocks closed higher, with the exception of Telefónica, which slipped 0.29%. Inditex gained 0.89%, Iberdrola advanced 0.58%, and Repsol added 0.23%.

Elsewhere in Europe, investor sentiment remained positive. Milan gained 0.31% and also reached record highs, while London rose 0.14% and Germany’s DAX added 0.1%. Paris was the only major European market to close lower, falling 0.2%.

Wall Street traded mixed during European market hours, with the Dow Jones rising 0.35% while the Nasdaq and S&P 500 edged lower.

Investors were also focused on the Federal Reserve’s first policy meeting under Chairman Kevin Warsh. With inflation running at 4.2%, markets closely watched the central bank amid continued pressure from President Donald Trump to lower interest rates.

Earlier in the day, details emerged regarding what Trump described as an “incredible” peace agreement between the United States and Iran. The deal includes the lifting of naval blockades, restrictions preventing Iran from developing nuclear weapons and the creation of a $300 billion reconstruction and economic development fund for the country.

The agreement also helped support energy markets. Brent crude, Europe’s benchmark oil contract, climbed 1.42% to $80.08 per barrel, while West Texas Intermediate (WTI) crude rose 1.34% to $77.07.

Natural gas prices in the Dutch TTF market fell 1.37% to €41.49 per megawatt-hour.

In fixed-income markets, the yield on Spain’s 10-year government bond declined to 3.341%, while the country’s risk premium versus German debt narrowed to 41.4 basis points.

Precious metals posted modest gains ahead of the Fed decision. Gold rose 0.57% to $4,356 per ounce, while silver advanced 0.86% to $70.62.

Bitcoin moved lower, falling 0.85% to $65,226.