The FTSE MIB rose 1.4% to close at 48,176 on Tuesday, its highest level since 2000, following reports that US-Iran talks could resume in Islamabad as early as this weekend. Oil prices fell on hopes for an end to conflict-driven supply shortages, easing stagflation and rate hike fears, reducing pressure on financial stocks. UniCredit advanced 3.2%, Intesa Sanpaolo gained 1.9%, Generali added 1.7%, and MPS rose 2%. The luxury and auto sectors posted gains as risk aversion declined, with Stellantis up 3.5%, Ferrari advancing 2.1%, Moncler up 3.2%, and Brunello Cucinelli gaining 2.3%. STMicroelectronics rose 2.8% as tech stocks posted gains in the US, supporting the semiconductor sector. In contrast, lower oil prices pressured Eni, down 2.2%, and Tenaris, down 1.9%.