FTSE MIB Falls as Iran-US Tensions Lift Oil Prices

The FTSE MIB Index decreased 262 points or 0.52 percent on Monday to close at 49775 points. The decline was led by Avio (-8.45%), Fincantieri (-3.97%) and Leonardo SpA (-3.96%). On the upside, the strongest performers were Tenaris (3.49%), Saipem (2.89%) and Eni (2.17%).

The FTSE MIB fell 0.5% to close at 49,775 on Monday as reports that Iran will halt communication with the US cast doubt on the prospects for renewing the ceasefire. Oil prices rebounded, reviving stagflation concerns and pushing bond yields higher. Financial stocks came under pressure amid expectations of higher borrowing costs and a hawkish monetary outlook, with UniCredit down 0.7%, Intesa Sanpaolo losing 1.9%, and Generali shedding 0.8%. Utilities also traded lower, with Enel down 0.7%. Other notable laggards included Stellantis (-2.7%) and Leonardo (-3.6%). In contrast, energy-related stocks advanced alongside the oil rally, with Eni up 2.2%, Tenaris gaining 3.2%, and Prysmian adding 0.9%.

The FTSE MIB was broadly flat near 50,000 at the start of the first trading session in June, as caution prevailed amid ongoing uncertainty in the Middle East. The US and Iran are reportedly discussing an extension of the ceasefire and the reopening of the Strait of Hormuz, though no concrete progress has been confirmed. Israel’s expanded ground offensive in Lebanon has also heightened fears of a broader military escalation. On the bourse, gains were led by Eni (+1.3%), tracking higher oil prices, alongside advances in Prysmian (+1.6%), Tenaris (+1.7%), and STMicroelectronics (+1.1%). These were offset by declines across most heavyweight financials, including UniCredit (-0.4%), Intesa Sanpaolo (-0.9%), Banco BPM (-0.6%), and Mediobanca (-0.4%). Unipol Gruppo also slipped 0.7%, despite Moody’s upgrading its Insurer Financial Strength Rating (IFSR) to “A3” with a stable outlook.