Signs of a widening conflict in the Middle East, marked by Yemeni Houthi intervention against Israel in support of Iran, could pose new threats to maritime traffic in the Red Sea—a critical oil trade artery alongside the Strait of Hormuz. Crude oil prices surpassed 115 dollars per barrel today, following a surge of nearly 60% during the month of March.
As of 9:45 CET, the FTSE Mib index was down 0.2%.
The energy sector rose (+0.7% for the index) led by ENEL and ENI, while renewables firm ERG also gained (+1.7%).
FERRAGAMO showed positive momentum, rising 1.8%.
Conversely, the defense sector retreated, with LEONARDO shedding 2% and FINCANIERI down 1%.
Banking stocks also traded lower (-0.6%), with MPS sliding 1.4%.
BFF Bank plummeted more than 60% and remains subject to temporary trading halts after the Bank of Italy appointed two extraordinary commissioners to temporarily assist the Board of Directors. The central bank identified accounting irregularities that could result in additional "past due" exposures totaling up to 1.3 billion euros.
TREVI also cratered, down approximately 25%, following the announcement of a financial restructuring plan. The maneuver includes a 100 million euro rights issue expected to be completed by the third quarter of this year, supported by a pre-underwriting agreement with Mediobanca.
(Claudia Cristoferi, editing Sabina Suzzi)
