The FTSE MIB shed 0.6% to close at 49,579 on Wednesday in a cautious session for European stock markets despite the sharp drop in oil prices amid reports of an unofficial draft of a US-Iran interim peace deal. According to the text, Iran would commit to restoring commercial traffic in the Strait of Hormuz to pre-war levels within a month, while the US would withdraw military forces from the vicinity of Iran and lift the naval blockade. It remains unclear whether the US has agreed to the terms. The BTP-Bund spread narrowed slightly, while financials traded mixed, with UniCredit down 0.5% and Intesa Sanpaolo up 1.4%. Utilities also traded lower, with Enel losing 2.4%. Eni retreated 2.8% and Prysmian shed 2.5% as oil prices declined. Meanwhile, Stellantis rose 3.8% after peer Volvo Cars obtained approval from US authorities to continue operating in the American market.