The IBEX 35 opened Wednesday with moderate gains, as the session was defined by persistent anxiety over U.S.-Iran tensions, balanced by the support of relatively lower oil prices and enthusiasm for the digital sector.

On the previous day, doubts resurfaced in financial markets regarding a potential peace agreement in the Middle East following U.S. strikes against Iran. According to Tehran, these actions violated the ceasefire and could complicate efforts to end the war and the blockade of oil transit through the Strait of Hormuz.

U.S. Secretary of State Marco Rubio stated that a deal with Tehran to halt the conflict could 'take a few days', while the Iranian agency Tasnim reported that the country is demanding the release of 24 billion dollars in frozen funds held abroad.

Market sentiment remains fragile amid the ebbs and flows of negotiations for a lasting truce, following three months of conflict that have rattled energy markets. Attention is also focused on statements from central bankers to gauge the impact of the energy crisis on inflation and interest rates.

Brokerage firm Renta 4 noted that the market is 'awaiting developments regarding the Middle East conflict', as 'negotiations continue, albeit in a turbulent environment with red lines yet to be clarified: the nuclear program, the fate of enriched uranium, the Strait of Hormuz, the release of frozen Iranian assets, and the Lebanese front'.

In this context, remarks by Isabel Schnabel, who alluded to the need for rate hikes at the next ECB meeting, serve as a 'confirmation that the energy shock has already caused structural damage to infrastructure and supply chains that monetary policy cannot ignore', according to analysts at the Spanish firm.

Schnabel added, as cited by Renta 4, 'that there are already incipient signs of second-round effects passing through to general consumption, although this view is not shared by all ECB members and is countered by wage moderation at +2.5% in 1Q26'.

In parallel, the Reserve Bank of New Zealand held interest rates at 2.25% in a close-run decision that emphasized the need for borrowing costs to rise imminently. Meanwhile, investors await Thursday's release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge.

Despite the uncertainties, markets are being bolstered by the moderation in crude prices and growing confidence in the artificial intelligence trade.

Overnight, South Korea's Kospi added another 2.2%, bringing its annual gain to 95%, supported by a deal with unions that will avert a strike at Samsung and a rally in SK Hynix, which joined the elite club of companies with a market capitalization exceeding one trillion dollars amid demand for AI chips.

The tech frenzy also drove Japan's Nikkei 225 index to a new record, while the U.S. S&P 500 closed Tuesday at all-time highs.

Against this backdrop, at 0702 GMT on Wednesday, the Spanish benchmark IBEX 35 was up 77.20 points, or 0.42%, at 18,368.10 points, while the FTSE Eurofirst 300 index of major European stocks advanced 0.16%.

In the banking sector, Santander rose 1.09%, BBVA gained 0.90%, Caixabank advanced 0.48%, Sabadell climbed 2.17%, Bankinter appreciated 0.67%, and Unicaja Banco rose 0.70%.

Among large-cap non-financial stocks, Telefónica retreated 0.28%, Inditex advanced 0.97%, Iberdrola shed 0.83%, Cellnex gained 0.45%, and the oil major Repsol lost 1.03%.

Notably, Naturgy fell 4.41% following news that CVC exited the energy distribution group's capital by selling its 13.8% stake.

(Reporting by Tomás Cobos; editing by Benjamín Mejías Valencia)