The Ibex 35 index experienced volatility in late June and July 2025, influenced by geopolitical tensions and trade negotiations. Following a US attack on Iran in late June, the Ibex 35 initially dropped below 13,800 points but recovered to close nearly flat. The index then steadily climbed, surpassing 14,000 points in early July, buoyed by gains in banking and steel sectors, with notable contributions from Santander, Sabadell, Indra, and Grifols. The market was further supported by optimism around trade agreements, including a commercial pact between the US and Japan in late July, which pushed the Ibex above 14,200 points. Subsequently, the Ibex fluctuated around the 14,000-point mark amid ongoing concerns over US tariffs and pending negotiations between the US and the EU. The index reached new annual highs near 14,374 points by late July, approaching within 10% of its historic peak from 2007. Key drivers included solid corporate earnings, particularly from Spanish banks. Unicaja reported a 14.6% increase in first-half net profit to €338 million, leading to an 8% rise in its shares and positively influencing the Ibex. Banco Santander posted a 7% net income increase to €6.833 billion in the first half of 2025 and announced a €1.7 billion share buyback program. CaixaBank reported a 10.3% rise in first-half profit to €2.951 billion, despite a decline in net interest income and a slight drop in second-quarter net profit due to banking taxes and lower lending income. Meanwhile, Barclays reported a 23% increase in first-half profit, driven by strong trading revenues linked to US trade tariffs, and announced a $1.3 billion share buyback. HSBC, however, saw a 26% drop in first-half profit, impacted by a $2.1 billion charge related to its investment in China's Bank of Communications. The Ibex’s performance remains sensitive to external factors such as US trade policies, European Central Bank decisions, and global macroeconomic data, with investors closely monitoring upcoming earnings reports and economic indicators.