Milan Leads European Markets Although Middle East Tensions Fuel Oil Price Surge

Milan’s FTSE Mib index stood out as the sole gainer among major European markets on Friday, March 20, 2026, amidst escalating concerns over the conflict in the Middle East and its potential impact on global oil supplies. The index rose 0.2% to close at 43,806.49, while other key European indices experienced declines. London’s FTSE 100 fell 0.1%, Paris’s CAC 40 dropped 0.2%, and Frankfurt’s DAX 40 shed 0.4%.

Oil Prices Spike on Potential Strait of Hormuz Disruption

Brent crude oil prices surged to $110.48 per barrel, up from an intraday low of approximately $105, following reports suggesting potential U.S. Military intervention in the region. Specifically, reports from Axios indicate that U.S. President Donald Trump is considering occupying the Iranian island of Kharg to ensure the continued flow of shipping traffic through the strategic Strait of Hormuz. WTI crude too saw an increase, rising to over $97 per barrel.

Italian Market Performance

Beyond the FTSE Mib, Italy’s Mid-Cap index gained 0.7% to 52,295.63, the Modest-Cap rose 0.3% to 32,173.55, and Italy Growth edged up slightly to 8,334.16. Within the FTSE Mib, Banca Monte dei Paschi di Siena led the gains, rising 2.7%, followed by Mediobanca, up 2.6%.

European Economic Data and Currency Movements

Preliminary Eurostat data released on Friday revealed a Eurozone trade deficit of EUR1.9 billion, a significant decrease from a surplus of EUR11.2 billion in December. Italy’s trade surplus also narrowed in January, falling to EUR1.09 billion from EUR5.99 billion in December, though it remained above the EUR288 million deficit recorded in January 2025. The euro traded just above 1.155 against the U.S. Dollar.

Stock Specific Movements

In addition to Banca Monte dei Paschi di Siena and Mediobanca, Amplifon (+4.2%) also performed well. Conversely, Inwit experienced a sharp decline (-7.5%) after revising its 2026 guidance downwards due to concerns about a joint venture between Tim and Fastweb+Vodafone that could impact existing agreements. Other decliners included Enel (-3.2%), ST (-3.5%), Leonardo (-4.1%), and Unicredit (-3.8%). Moncler (+0.7%) saw gains in the luxury sector, while Cucinelli (-2.5%) declined. FedEx also saw a slight increase due to better-than-expected fiscal third-quarter results, earning $5.25 per share on revenue of $24 billion.

Bond Market Volatility

Italian government bonds faced a challenging session, with the yield spread between the ten-year BTp and its German equivalent widening to 91 basis points, levels not seen since September 2025. The yield on the ten-year BTp rose to 3.94%, approaching the 4% threshold.

Commodity and Cryptocurrency Updates

Natural gas prices in Amsterdam fell sharply to around 58 euros per megawatt hour. Bitcoin remained relatively stable, trading around $70,000. Gold continued its downward trend, falling below $4,600 an ounce.