The European stock markets have started the week on a negative note, reflecting the heavy losses in Asia where the Japanese Nikkei experienced a significant drop of 3.48%. Investor concerns are rising over the ongoing conflict in the Middle East, particularly following an ultimatum issued by Donald Trump to Iran, demanding the reopening of the Strait of Hormuz within 48 hours, to which Tehran quickly responded. Additionally, there are fears regarding a potential ground invasion of Lebanon by Israel, further contributing to market volatility.

This tense geopolitical situation has had immediate effects on oil prices, with futures for both Texas' WTI and Europe's Brent crude surging to over $100 per barrel early in the day. The rise in oil prices is also accompanied by an increase in gas prices at the TTF in Amsterdam. The International Energy Agency has raised alarms, warning that the ongoing war could lead to the most severe global energy crisis seen in decades, adding to the market's anxieties and volatility.

In the Italian stock market (Piazza Affari), particular attention is on the telecommunications company Tim, whose shares are rising, while the postal service's shares are falling after a takeover bid (Opas) initiated by the latter. Among banks, the focus has shifted to varying performances, indicating a complex and dynamic financial landscape influenced by the broader geopolitical tensions.