Finance
Rivers and reservoirs close to breaching as Storm Leo pounds Iberian Peninsula
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Storm Leo brings heavy rains to Spain and Portugal, prompting emergency measures and flood warnings as authorities brace for impact.
By Jon Nazca
RONDA, Spain, Feb 4 (Reuters) - Rivers and reservoirs in Spain and Portugal were on the verge of overflowing on Wednesday as a new weather front pounded the Iberian peninsula just a week after Storm Kristin left six people dead and thousands without power.
In southern Spain's Andalusia, 14 rivers and 10 dams were at "extreme" risk of overflowing, compounded by saturated ground from earlier storms this month, according to Antonio Sanz, head of the regional government's interior department.
Portugal raised its alert level to the maximum until at least Friday, with authorities warning the Vouga, Agueda, Mondego, Lis, Tejo, and Sorraia rivers are at high risk of flooding.
Andalusian authorities described the situation in the municipality of Grazalema as dire, with an overwhelmed sewage system leading to water gushing from homes. Television footage showed water flowing out of electrical sockets and workers drilling holes into walls to drain floodwaters. A house wall collapse in Ubrique, Cadiz, injured one person.
At least 3,500 residents had been evacuated in Andalusia as emergency services braced for the heaviest rainfall expected between noon and 4 p.m. local time (1500 GMT).
Authorities cancelled classes across most of Andalusia, warned residents to avoid unnecessary travel and deployed 1,200 emergency personnel and 400 military service members to assist in flood-prone areas. Emergency aircraft and helicopters were also called in to monitor critical zones.
"It's been raining like this for hours. The river has already overflowed, and people are very worried inside their homes. We are experiencing many power cuts," Jose Luis Castillo, who lives in Jimera de Libar told Reuters.
Spain's state weather agency AEMET forecast continuous and intense rainfall in parts of Andalusia, central Spain, and Galicia in the northwest lasting through Saturday. It warned of possible landslides and damage to property and infrastructure.
Portugal's National Civil Protection service said water levels are likely to rise over the coming days and the armed forces have deployed 1,600 personnel, including marine teams with 35 inflatable boats, to rescue people from flood-hit areas.
(Reporting by Emma Pinedo and David Latona in Madrid, Sérgio Gonçalves in Lisbon; Editing by Sharon Singleton, Charlie Devereux and Nia Williams)
Disaster management refers to the processes and strategies used to prepare for, respond to, and recover from emergencies and disasters, aiming to minimize their impact on communities.
Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of financial markets, institutions, and the economy without excessive risk.
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