The IBEX 35 opened higher on Friday, buoyed by expectations of a deal between the United States and Iran to reopen the Strait of Hormuz and extend the ceasefire, as well as renewed optimism surrounding the artificial intelligence sector.

Friday's rally helped the selective index stay on track for a monthly gain of around 3.5% for May, marking its second consecutive weekly advance.

Despite the buying tone, concerns persist over the long-term consequences of the Middle East conflict. Even if the reopening of the Strait of Hormuz materializes, markets are pricing in the fact that oil will not return to pre-war levels and that higher energy costs will tighten global financing conditions.

For now, traders awaited concrete details on a potential pact to reopen Hormuz and extend the truce between Washington and Tehran.

According to Reuters, both countries have reportedly reached an agreement to prolong the ceasefire and lift restrictions on maritime traffic, although US President Donald Trump has yet to sign off on it and Iranian state media claim it has not been finalized.

In the commodities market, Brent futures fell by nearly a dollar to 92.69 dollars per barrel, with a weekly decline of over 10%, while the S&P 500 posted a new record close on Thursday, the MSCI world index hit all-time highs, and US Treasury yields eased.

Analysts, however, doubt that the decline in yields will be sustained, as any potential agreement between the United States and Iran is unlikely to quickly defuse the inflationary pressures triggered by the surge in crude oil.

TECH COMPONENT ALSO DRIVES UPSIDE

An upward revision of revenue forecasts from computer maker Dell sent its shares soaring 39% in after-hours trading. Meanwhile, Anthropic announced it has raised 65 billion dollars to bolster its computing capacity and meet growing demand for its Claude chatbot, in a deal that brings its valuation to 965 billion dollars, overtaking OpenAI.

These are 'news items that reinforce the AI cycle narrative, showing that the investment cycle in AI infrastructure shows no signs of slowing down', according to Renta 4's morning report.

In the fixed-income market, US Treasury yields retreated during the Asian session, with the 10-year note at 4.44% and a weekly decline of nearly 15 basis points, a movement mirrored across global debt markets.

Macroeconomic data released the previous day showed US personal consumption, income, home sales, and GDP slightly weaker than expected, alongside inflation that remains high but marginally below forecasts, although the price indicator reinforced expectations that the Federal Reserve will not cut rates this year.

Attention now shifts to Europe, with the publication throughout the day of preliminary inflation data from several countries across the continent.

'These are relevant data points as they will determine the ECB's next decision on June 11', noted analysts at Bankinter.

At 0702 GMT on Friday, the Spanish blue-chip IBEX 35 was up 100.80 points, or 0.55%, at 18,380.10 points, while the FTSE Eurofirst 300 index of leading European shares advanced 0.23%.

For the week as a whole, the IBEX 35 shows a 2.2% gain, while the monthly tally reflects a cumulative rise of 3.37%.

In the banking sector, Santander rose 1.14%, BBVA gained 1.21%, Caixabank advanced 0.96%, Sabadell climbed 0.80%, Bankinter appreciated 1.06%, and Unicaja Banco rose 0.64%.

Among non-financial heavyweights, Telefonica gained 0.38%, Inditex shed 0.45%, Iberdrola remained unchanged, Cellnex rose 0.90%, and oil major Repsol edged up 0.18%.

(Reporting by Tomas Cobos; editing by Benjamin Mejias Valencia)