The FTSE MIB fell to around 52,300 on Tuesday, halting a three-day winning streak, as escalating tensions in the Middle East weighed on market sentiment.
Crude prices extended their gains after renewed US-Iran strikes fueled concerns over global supply, while President Trump announced plans to levy transit fees on ships using the Strait of Hormuz.
Losses were broad-based, led by financial stocks including Unicredit (-1.2%), Banco BPM (-1.6%), Mediobanca (-1.2%), Banca Mediolanum (-1.2%), BPER Banca (-1.7%), and Banca Monte dei Paschi di Siena (-1.0%).
Meanwhile, Telecom Italia slipped 0.7%, despite an Italian court rejecting Inwit's urgent request to suspend the company's withdrawal from a tower lease agreement.
Energy stocks continued to outperform, with Eni rising nearly 2% and Tenaris gaining about 1%, supported by higher oil prices.