Piazza Affari maintains the positive momentum seen at the opening, fueled by banks and defense stocks amid widespread optimism regarding a potential agreement between the U.S. and Iran expected to be signed Friday.

Expectations for the reopening of the Strait of Hormuz are weighing on oil prices, which on one hand eases inflation fears but on the other pressures the share prices of energy companies.

Around 1:00 p.m., the FTSE Mib is up 1.2% with trading volumes at approximately €1.8bn.

Key stock highlights include:

** Consistent with the broader European trend, banks are among the primary beneficiaries of this renewed risk appetite. The Italian banking sector index is up 2.6%, led by a 4% gain for UNICREDIT as it awaits the final outcome of its exchange offer for Commerzbank, which has reached its final day. Today, for the first time, the offer is at a premium, as the German bank's shares are trading below the offer price. Meanwhile, the Frankfurt Prosecutor's Office has launched a preliminary investigation into the exchange offer following a complaint filed by the Commerzbank works council regarding potential market manipulation.

** Solid gains of around 2% were also recorded for POSTE and INTESA SANPAOLO. BANCO BPM, which is holding a board meeting today where it may evaluate potential countermoves to the takeover bid launched by Intesa for MPS, is up 1.5%.

** Defense stocks are active, mirroring performance across Europe. LEONARDO (+1%), FINCANTIERI (+1.4%), and particularly AVIO (defense and space) (+4%) are rising, with the latter rebounding from yesterday's decline.

** The automotive sector is seeing some profit-taking after yesterday's rally, while energy stocks continue to slide due to falling crude prices: SAIPEM is down nearly 2%.

** STM is weak (-2.5%) after announcing this morning the launch of a $1.5bn convertible bond in two tranches, alongside the early redemption of another. Equita notes that the dilutive impact on EPS appears very limited, at approximately 1% in the most unfavorable scenario. However, investors have recently become highly sensitive to tech companies tapping the debt market to finance AI initiatives. U.S. giant Nvidia also announced a bond issuance plan overnight to raise $25bn.

(Claudia Cristoferi, editing Francesca Piscioneri)