Piazza Affari deepened its losses as the opening of Wall Street approached, with futures pointing to a weaker start across the Atlantic.
International markets remain jittery due to escalating tensions in the Middle East, which show no signs of easing.
The ongoing clashes between Israel and Iran are fueling concerns over a potential drop in oil supply, driving crude prices higher.
Around 12:50 PM, the Ftse Mib index was down 1.5%, with trading volumes around 1.25 billion euros.
Key stocks in focus:
The banking sector is bearing the brunt of the sell-off across Europe, as investors look ahead to the conclusion of the Federal Reserve meeting tomorrow. The Italian banking index is down 2.8%, with losses ranging from a 3.5% drop for Unicredit to a 1.7% decline for Mediobanca.
Stellantis pared earlier gains but remained in positive territory, up 0.6%, bucking the trend after Kepler Cheuvreux raised its target price to 12 euros from 10 and reiterated its "buy" rating.
Energy stocks linked to oil prices performed well, with Saipem up 1.5%, Eni gaining 0.6%, and Tenaris advancing 1%.
(Reporting by Claudia Cristoferi, editing by Gianluca Semeraro)
