[Fantomen]

No, it doesn't. But if two enemy armies move against each other then usually one of them will be blocked, on rare occasions they move through each other.

If you manage to assassinate the commander(s) leading troops with a spell or assassin those troops won't move obviously, and that can be a nice way to kill lots of mages (if you are attacked by a big army with lots of battlemages and you manage to snipe the commanders leading troops the mages will still attack you and have no troops to screen them, it's a rather luck based thing to do though as targeting is random)