The IBEX 35 has started this Monday, August 31, with a moderate advance that allows it to maintain the barrier of 20,000 points on a day marked by the strong rise in oil. The Spanish selective index has begun the session with a 0.14% advance, up to 20,070 points, after closing on Friday at 20,041 points.
The movement coincides with a new spike in oil due to the increase in tensions between the United States and Iran. The Brent, a reference in Europe, was rising around 2.5% at the opening of the European stock exchanges, up to 90.3 dollars per barrel, an evolution that is having opposite effects on some of the main Spanish stocks.
The clearest example appears in Repsol and IAG. The oil company led the gains of the IBEX 35 during the first moments with an increase of 1.62%, while the airline group fell by 0.86% and was among the stocks with the worst performance in the index.
The IBEX 35 opens at 20,070 points
The benchmark index of the Spanish stock market has started the last session of August with an increase of 0.14%, which has allowed it to reach 20,070 points during the first minutes of trading.
The IBEX had closed the Friday session with an advance of 0.8%, up to 20,041 points. The opening this Monday thus keeps the index above a reference of 20,000 points that again concentrates the attention of investors.
The main European stock exchanges showed a mixed behavior at the beginning of the session. Frankfurt recorded declines, while Paris, London, and Milan began the day with moderate advances.
The Brent surpasses 90 dollars again
Oil is one of the main protagonists of the markets this Monday. During the European opening, the barrel of Brent was rising around 2.5%, up to 90.3 dollars.
Reuters later placed the quotation around 90.70 dollars per barrel, with an advance of over 2%, on a day conditioned by the new escalation of tension between the United States and Iran. The attacks and reprisals recorded have again raised concerns in the markets about the stability of energy supplies from the Middle East.
The focus remains especially on the Strait of Hormuz, a strategic area for the global transport of oil and whose situation has caused strong movements in crude oil over the past few months.
Repsol leads the rises of the IBEX 35
The rise in oil prices is particularly benefiting Repsol. The Spanish oil company was leading the gains of the IBEX 35 during the first moments of trading with a 1.62% advance.
Following Repsol, among the rising stocks were Acciona Energía, with a 0.46%; Redeia, with a 0.33%; and Banco Santander, with a 0.31%, according to the quotes recorded at the opening.
The performance of Repsol reflects the sensitivity of energy companies to fluctuations in the international oil price, especially in sessions where crude oil registers movements of this magnitude.
IAG falls with the rise in fuel prices
On the opposite end was IAG. The airline group was down 0.86% in the first moments of the day and was then leading the losses of the IBEX 35.
Airlines are among the companies with the highest exposure to a prolonged rise in oil prices due to the weight of fuel within their operating costs. For this reason, sharp movements in crude oil can also translate to the stock prices of airline companies.
Behind IAG were ACS, with a drop of 0.58%; Merlin Properties, with a 0.44%; Colonial, with a 0.37%; and Ferrovial, with a decrease of 0.35% during the first moments.
Repsol and IAG: the two effects of Brent above 90 dollars
The opening allows us to observe the different impact that the rise in oil prices has depending on the business of each company. While an oil company like Repsol can benefit from high crude prices, an airline like IAG faces the opposite effect due to the potential increase in its costs.
| Asset | Opening data | Session key |
|---|---|---|
| IBEX 35 | +0.14% | 20,070 points |
| Brent | +2.5% | Around 90.3 dollars per barrel |
| Repsol | +1.62% | Led the gains of the IBEX |
| IAG | -0.86% | Led the declines at the opening |
The tension between the United States and Iran is once again pressuring oil
The rise in crude oil comes after a new escalation between the United States and Iran. Reuters reports new U.S. attacks against Iranian positions and subsequent reprisals from Tehran, events that have once again increased the geopolitical risk premium incorporated into the price of oil.
The market pays special attention to any event that could disrupt the transport of crude oil through the Persian Gulf and the Strait of Hormuz. The fear of supply interruptions usually translates quickly into increases in the international price of oil.
Reuters points out that geopolitical tensions have pushed Brent back above 90 dollars and have also contributed to the rise in bond yields due to the risk that higher energy prices will increase inflationary pressures again.
Interest rates also influence the stock markets
Investors are also continuing to absorb the message delivered by the chairman of the Federal Reserve, Kevin Warsh, during the Jackson Hole symposium held last week.
Warsh left open the possibility of further interest rate hikes if the Federal Reserve does not gain enough confidence that inflation is sustainably returning to its 2% target. His statements have led to an increase in expectations of monetary tightening.
Reuters reports this Monday that Barclays has revised its forecasts after the speech and now expects two hikes of 25 basis points before the end of 2026, one in September and another in December.
What to watch in the IBEX 35 this Monday
The behavior of oil will be one of the main references during the rest of the session. If Brent maintains or extends its gains, the differences between companies benefiting from the rising energy costs and those more exposed to fuel costs could continue.
Investors will also have as a reference this Monday the inflation estimate for Germany for August and the Spanish current account balance for June.
The IBEX 35 thus starts the last trading day of August defending the 20,000 points, with Repsol as the main beneficiary at the opening and with IAG at the opposite end as the market looks again at the price of oil.