Spain's benchmark index stayed above 19,600 points despite another jump in oil prices. Repsol led the gains as Middle East tensions and uncertainty over a US diesel policy debate kept investors cautious.
Oil climbed back above 105 dollars a barrel, but Spain's Ibex 35 stayed above 19,600 points. The benchmark stood at 19,682 points around 12:20 on Thursday after a hesitant session. Repsol led the gains as investors weighed tensions in the Middle East and the planned meeting between Donald Trump and Xi Jinping.
Crude rose fast enough to keep energy costs at the centre of trading. Brent gained 2.3% to 105.47 dollars a barrel. West Texas Intermediate rose 1.8% to 93.85 dollars. Brent briefly moved above 106 dollars before falling back towards its mid-session level.
US diesel futures fell after Politico reported a possible export-ban plan, then began to recover when the White House publicly denied that a 90-day ban was being prepared.
The market is taking the shock in stride rather than breaking under it.
Oil supply policy added another layer of uncertainty. Politico reported that the United States was considering a 90-day restriction on diesel exports. The White House later called the report false. Energy Secretary Chris Wright said a hard ban was not under consideration. Officials were discussing voluntary measures to increase diesel supplies within the United States. The proposal remains part of the market backdrop as a disputed possibility, not an enacted restriction.
Stefano Cucchi, a Product and Macroeconomic Research specialist at Eurizon, said oil prices remained volatile and relatively high. He pointed to continuing geopolitical uncertainty in strategic areas of the Arabian Peninsula as a major focus for financial markets.
The diesel debate is unfolding against high fuel prices and concerns about tight supplies. Reuters reported that Chris Wright warned an export restriction could instead push up prices for gasoline and jet fuel, adding another reason for markets to treat the proposal cautiously.
The tension left Madrid's index split. Repsol rose 2.28%. Puig gained 2.06%, Solaria added 2.03%, Endesa rose 1.61% and ACS gained 1.13%. At the other end, Indra fell 1.8%. Caixabank dropped 1.26%, Sacyr lost 0.93%, IAG declined 0.91% and Cellnex slipped 0.72%.
Spain's market held up better than its main European peers. London fell 0.04%. Paris lost 0.55%, Frankfurt declined 0.49% and Milan dropped 0.6%. The Ibex 35 held its ground while the wider regional session moved into negative territory.
Pressure also showed up beyond stocks. The euro weakened to 1.1372 dollars. Spain's ten-year government bond yield rose to 4.064%. It had moved above 4% the previous day and reached levels last seen in October 2023. Spain's risk premium also rose to 48.6 basis points against German government debt with the same maturity.
The backdrop matters as markets reassess Spain's economic outlook. That includes the earlier growth forecast, which pointed to stronger domestic demand but higher expected inflation. Thursday's figures show investors still backing Spanish shares even as oil and borrowing costs rise together.
For now, the Ibex 35 is holding up better than nearby European exchanges. Repsol is turning the crude rally into the strongest gain among the listed leaders. The bond market and the weaker euro still point to pressure. Spanish equities are holding their level, but energy and financing costs are both moving higher.
