European Markets Lack Momentum as Brent Falls Below $110

Geopolitical tensions ease, but caution remains high amid ongoing conflict

Mar. 20, 2026 at 7:19am

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On Friday, major European indices are expected to open slightly above par but without significant momentum, amid a climate of de-escalation regarding attacks on energy infrastructure. Oil prices fell in European pre-market trading after Israeli Prime Minister Benjamin Netanyahu stated that Iran is "in the process of being destroyed" and that the conflict could end sooner than expected. However, caution remains high as the conflict enters its fourth week, with stock markets under pressure and oil holding around $110 per barrel.

Why it matters

The easing of geopolitical tensions and the potential lifting of sanctions on Iranian oil could provide some relief to European markets, which have been under pressure due to the ongoing conflict in the region. However, the situation remains volatile, and the markets are likely to remain cautious until there is more clarity on the resolution of the conflict.

The details

The FTSE Mib is called up 0.5% or 242.5 points after closing Thursday down 2.3% at 43,701.38. In Milan, the Mid-Cap ended 3.0% lower at 51,960.12, the Small-Cap closed down 2.0% at 32,093.11, while Italy Growth retreated 0.4% to 8,330.88. In Europe, London's FTSE 100 and Paris's CAC 40 are indicated at par, while Frankfurt's DAX 40 is expected to rise 0.4% or 98.9 points. Eni and its subsidiary Saipem were among the few gainers in Milan, while Telecom Italia, Inwit, UniCredit, and several other stocks declined.

  • On Thursday, Telecom Italia announced a non-binding agreement with Fastweb and Vodafone for the construction and management of new mobile phone towers in Italy.
  • On Thursday, Technogym announced that it closed 2025 with an adjusted net profit of €119.9 million, up 33% from €90.2 million in 2024.
  • On Thursday, the board of directors of Arnoldo Mondadori Editore approved the accounts as of December 31, closing the year with a net profit of €54 million, down from €60.2 million in 2024.

The players

Donald Trump

The President of the United States who ruled out the possibility of a ground troop intervention against Iran.

Scott Bessent

The U.S. Treasury Secretary who signaled that the administration is considering a potential lifting of sanctions on Iranian oil.

Benjamin Netanyahu

The Prime Minister of Israel who stated that Iran is "in the process of being destroyed" and that the conflict could end sooner than expected.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, Grocery employee

The takeaway

The easing of geopolitical tensions and the potential lifting of sanctions on Iranian oil could provide some relief to European markets, but the situation remains volatile, and the markets are likely to remain cautious until there is more clarity on the resolution of the conflict.