European markets are trading lower Thursday, March 26, 2026, as concerns mount over the situation in the Middle East and the prospects for a swift resolution to the conflict between the U.S. And Iran appear to diminish. Tehran has reportedly rejected a proposal from Washington and countered with a plan of its own. The uncertainty is weighing on investor sentiment, particularly as oil prices start to climb amid fears of supply disruptions.
The FTSE MIB of Milan is moving lower alongside other major European indices. The ongoing conflict and potential for escalation are creating significant volatility in global markets, prompting investors to reassess risk exposure.
Focus on MPS at Piazza Affari
Eni is trading higher in Milan, tracking gains in crude oil prices. Attention is likewise focused on Banca MPS, as analysts question the future of the institution following a disagreement between the board of directors and CEO Luigi Lovaglio, who has been relieved of his duties and suspended from his role as general manager. Inwit is facing selling pressure as Fastweb and Vodafone prepare for a legal battle, while Telecom Italia is considering terminating its contract with the tower company. Nexi is also in focus after the resignation of CEO Paolo Bertoluzzo, who has been replaced by Bernardo Mingrone.
Oil and Gas Prices Rebound Amidst Iran Negotiation Uncertainty
Energy prices are rising again as renewed fears of a prolonged conflict in Iran raise concerns about potential disruptions to supplies through the Strait of Hormuz. Despite a 15-point peace plan proposed by the United States, Iranian Foreign Minister Abbas Araghchi stated that Teheran has no intention of initiating talks to end hostilities. Both oil and gas are experiencing gains after declines on Wednesday. Analysts suggest the 15-point plan sent by President Donald Trump to Iran via Pakistan includes conditions that the Islamic Republic may find difficult to accept, such as the removal of highly enriched uranium stockpiles and limitations on its ballistic missile program. Even if negotiations proceed, volatility in crude oil prices is likely to persist. “Our base case assumes a continued conflict and an interruption of the Strait of Hormuz for 4-6 weeks, before negotiations begin in earnest,” said Eric G. Lee of Citi Research.
Euro/Dollar at 1.15. Spread Increases
In currency markets, the euro is trading around 1.15 dollars (1.157 at the previous closing). Spot gold is down slightly but remains above 4,400 dollars per ounce. Silver is also lower. The spread between BTp and Bund is widening. The yield differential between the benchmark 10-year BTp and the equivalent German bond stands at 91 basis points, up from 88 basis points at yesterday’s closing. The yield on the benchmark 10-year BTp is also rising.
