Fascist Italy would align itself lightly with the West but seek to create its own like-minded anticommunist bloc likely including Turkey, Greece, and Spain with pretensions of being a "third side", like De Gaulle but to a much greater extent. Yugoslavia is another matter--if you butterfly away the Italo-Greek War, it's entirely an open question whether Germany would invade Yugoslavia (Hitler would see it as a distraction from the preparations to attack the USSR, but Hungary and Bulgaria would want to get it done); if it doesn't and Yugoslavia remains a neutral monarchy, then that might open up a split between Italy and the West if Mussolini still wants to press Italy's claims against Yugoslavia.
Despite Italy's earlier overtures to the Arab World, I think Fascist Italy would, like Spain and Portugal, have become a staunch supporter of Israel, and might back Britain and France during the Suez Crisis, in which case Italy faces similar anti-colonial/Arab nationalist insurgencies as France did, which would extend to Italian East Africa as well. I think it's also near-guaranteed that Italy would develop an independent nuclear program, no matter how Washington felt about it, and also likely that Italy would retain good relations with apartheid South Africa. Finally, as with Franco and Salazar, Mussolini's natural death in the 1960s and succession by Italo Balbo (if his death is butterflied away) would probably spell the beginning of the end of the Fascist regime.