Finance
Spain's Sanchez Says Global Citizens Shouldn't Pay for Fallout of Iran War
Published by Global Banking & Finance Review®
Posted on March 25, 2026
2 min readLast updated: March 25, 2026
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Spanish PM Pedro Sánchez condemned U.S. and Israeli military actions in Iran as illegal, warning they harm global economies—Spain’s blue‑chip IBEX lost €100 billion in market value in under a month—and pledged targeted measures to shield citizens from rising energy costs.
Spain's Sanchez: Iran War Inflicts Severe Economic Damage, Global Citizens Suffer
Global Economic Impact and Political Reactions
By Victoria Waldersee
Spain's Economic Losses Amid Iran Conflict
MADRID, March 25 (Reuters) - Spanish Prime Minister Pedro Sanchez said on Wednesday it was unjust for citizens worldwide to bear the cost of what he called illegal U.S. and Israeli actions in Iran, warning the war was inflicting severe global economic damage, with Spanish firms alone losing 100 billion euros ($116 billion) in under a month.
Impact on Spanish Families
"Every bomb that falls in the Middle East hits the wallets of our families," he told lawmakers in a parliament session laying out the reasons for his government's steadfast opposition to the war, a stance that has since been echoed by other European leaders.
IBEX Index Decline
The 100‑billion‑euro figure referred to the decline in the aggregate market capitalisation of Spain's blue‑chip IBEX index since the conflict erupted on February 28.
Government Measures to Mitigate Economic Fallout
Parliamentary Response
Parliament is expected to vote on Thursday on measures proposed by the cabinet last week to help citizens weather the economic fallout, including lowering fuel and electricity taxes and granting fuel subsidies to sectors most exposed to energy price spikes.
Regional Tensions and Political Statements
Netanyahu's Intentions in Lebanon
'NETANYAHU AIMS TO DESTROY LEBANON'
Sanchez, one of the most vocal supporters of Palestinians among Western leaders, also warned on Wednesday that Israel was seeking to inflict on Lebanon the same level of devastation it had brought to the Gaza Strip.
Statements on Israeli Actions
"An emboldened Israeli Prime Minister (Benjamin) Netanyahu aims to inflict on Lebanon the same destruction and suffering that was committed in Gaza," he said, speaking a day after Israeli ministers announced their intent to seize Lebanon's southern territory.
"It's not fair that someone sets fire to the world and the rest of us have to swallow the ashes," he added.
Additional Information
($1 = 0.8619 euros)
(Reporting by Victoria Waldersee; Writing by David Latona and Victoria Waldersee; Editing by Charlie Devereux and Ros Russell)
Key Takeaways
- •Sánchez denounced U.S. and Israeli strikes on Iran as violations of international law that unfairly burden global citizens, citing Spain’s €100 billion IBEX market loss since February 28 — showing sharp economic fallout (euronews.com).
- •He warned Israel intent on inflicting on Lebanon the same devastation seen in Gaza and argued global citizens should not pay for others’ wars (euronews.com).
- •Spain’s government is preparing targeted economic relief—lowering VAT on fuel, electricity and gas to around 10%, suspending some energy taxes, and granting fuel subsidies to vulnerable sectors—to mitigate the energy‑price shock (reddit.com).
References
Frequently Asked Questions about Spain's Sanchez says global citizens shouldn't pay for fallout of Iran war
1What economic impact has the Iran war had on Spanish firms?
Spanish firms have lost 100 billion euros in market value since the Iran war began, according to Prime Minister Sanchez.
2What measures is the Spanish government proposing to counter the economic fallout?
The cabinet proposes lowering fuel and electricity taxes and granting fuel subsidies to help citizens and exposed sectors.
3Why does Sanchez argue that citizens worldwide shouldn't bear the war's costs?
Sanchez believes it is unjust for global citizens to pay for the fallout of what he calls illegal actions in Iran, as the war drives up prices worldwide.
4How is Spain’s stance on the Iran war perceived among European leaders?
Spain’s opposition to the war has been echoed by other European leaders, indicating growing concern over economic and humanitarian impact.
5What did Sanchez say about Israel's actions in Lebanon?
Sanchez warned that Israel aims to inflict the same level of destruction on Lebanon as it did in Gaza.
