Oil Prices and ECB Hawkishness Send Stock Markets into Decline

The stock markets saw significant declines on Thursday due to rising oil prices and a more hawkish tone from the European Central Bank. The Ibex 35 dropped by 1.55% to close at 19,267 points.

The sharp rise in oil prices was the main catalyst for the decline, with Brent crude surpassing $100 per barrel for the first time in months. This development reignited fears of inflation and triggered a widespread decline in risk appetite.

The European Central Bank kept interest rates at 2.25%, but Christine Lagarde's tone was more hawkish than anticipated. This left open the possibility of a 25-basis-point rise in September, which added pressure on both fixed income and equities.