FTSE MIB Falls as US Iran Tensions Resurge

The FTSE MIB fell 1.4% to close at 48,207, shedding lat week's gains as renewed US Iran tensions weighed on sentiment. The US Navy seized an Iranian cargo vessel, undoing earlier de-escalation hopes after Iran’s foreign minister had pledged to keep the Strait open during the Israel Lebanon ceasefire. Uncertainty persists over whether talks will resume before the ceasefire expires Tuesday. Oil prices rose, reviving inflation and economic concerns. Banks declined sharply, UniCredit lost 5.3%, BPM 5.7%, Mediolanum 4.7%. Industrials also fell: Ferrari down 2.8%, Stellantis 1.2%, Campari 3.2%. Eni gained 2.5% on higher oil, and Leonardo rose 0.7% amid rising geopolitical risk.

The FTSE MIB Index dropped -662 points or 1.36 percent on Monday to close at 48207 points. Losses were led by Iveco Group (-29.15%), Banco BPM SPA (-5.68%) and UniCredit (-5.13%).

The FTSE MIB fell to around 48,400 on Monday, giving up some of last week’s gains and easing slightly from its record high as markets weighed renewed tensions in US–Iran relations. Sentiment weakened after the US Navy intercepted and boarded an Iranian-flagged cargo vessel, reversing earlier signs of de-escalation. Just days earlier, Iran’s foreign minister had said the Strait would remain open to commercial shipping during the 10-day Israel–Lebanon ceasefire, which had briefly eased concerns. However, uncertainty has returned, with no confirmation yet on whether US and Iranian officials will meet before the ceasefire expires on Tuesday. These latest developments have pushed oil prices higher, reviving worries about inflation and the wider economic outlook. Losses were led by heavyweight financials, including UniCredit (-4.9%), Intesa Sanpaolo (-2.3%), Banco BPM (-4.9%), Mediobanca (-2.8%), and Banca Mediolanum (-4.6%).