EU stock exchanges in check between tariffs and tensions in the Middle East, Milan -3% in the week. Wall Street closes at -1.79%. Crude oil soars

(Il Sole 24 Ore Radiocor) - Trump's tug-of-war over tariffs and the escalation of tensions in the Middle East with Israel's attack tonight against Iran and in particular against the country's nuclear sites, have held the European stock markets in check, which ended the week in negative territory. In detail, the reaching of a framework agreement between Washington and Beijing on the trade tariffs front had generated an injection of investor confidence, pushing up the Old Continent's stock exchanges. But the enthusiasm was short-lived: in less than 24 hours, the occupant of the White House announced unilateral tariffs before the 9 July deadline. Words that unnerved the stock markets, which did not even react to the US inflation figure, which was above expectations in May (an element that raises the possibility of a more accommodating Fed with regard to interest rates). Further complicating the picture Israel's attack on Iran increased tensions both in the Middle East and on European stock markets. Against this backdrop Milan dropped 2.9%, Frankfurt 3.3% and Paris 1.5%. The only market in positive territory was London, which closed the session at +0.1%. In terms of sectors, the oil & gas sector (+3.4%) rose on the back of the surge in crude oil prices, which surpassed $70 per barrel after the escalation in the Middle East and which rose 10.4% for Brent crude and 11.7% for Wti crude in the eighth quarter.

In Friday's session, the Milan stock exchange alone (FTSE MIB ) saw EUR 10.036 billion go up in smoke. At the European level, the Euro Stoxx 50, the index of the eurozone's leading companies, burned just over EUR 62 billion (62,093 billion). Wall Street also travelled with a minus sign with the Dow Jones dropping more than one point.

On the currency side, the dollar regained ground, with the euro/dollar exchange rate returning to the 1.15 mark. Gas in Amsterdam ran up over 4 per cent to EUR 38.2 per megawatt-hour. oil prices up sharply on the commodity markets: With the tension in Iran, Wti with delivery in July is trading above 74 dollars with an increase of 8 per cent while Brent crude with delivery in August is trading above 75 dollars with an increase of 8.5 per cent.

Wall Street was also in negative territory after Israel launched a wave of air strikes against Iran, adding an additional front at a time of heightened geopolitical tensions. The Dow Jones closed down -1.79% at 42,197.79 points. The S&P 500 closed down -1.12% at 5,977.57 points while the Nasdaq dropped 1.30% to 19,406.83 points. The US announced that it had no role or involvement in the attack on Iran. President Donald Trump, in a post on his Truth Social media, warned Iran that it must sit down at the nuclear negotiating table. "Iran must reach an agreement before there is nothing left. No more death, no more destruction. Just do it, before it is too late," he wrote. TheVix volatility index, the main indicator of fear, rose more than 17% to 21. It is the first time since the end of May that the Vix has reached such a high level, although it is still far from its April peak of 65.73.

In Milan, almost all major stocks moved into negative territory. Among the worst performers on the Ftse Mib, Brunello Cucinelli, Nexi and Stellantis. Iran aside, the banking risk remains under the lens, with the Banca Pop Sondr calling a possible merger with Bper "risky and uncertain", since the offer launched by the latter "does not recognise the real value of Popolare, but the price is congruous". Also in the spotlight is Mediobanca, while the outcome of Monday's shareholders' meeting, called to approve the takeover bid launched on Banca Generali, is still completely uncertain. Instead, energy stocks bucked the trend, with oil prices rallying after the Israeli attack, from Eni , to Tenaris and Saipem. Also on the rise were A2a , while stem losses Leonardo - Finmeccanica.