Ibovespa Falls as Iran Rejects Ceasefire

The Ibovespa lost over 0.5% to trade near 187,000 on Tuesday as investors weighed Middle East developments. Iran rejected the US proposal for an immediate ceasefire and Strait of Hormuz reopening ahead of US President Trump's deadline, instead proposing 10 clauses including an end to regional conflict, a safe passage protocol, and lifting of economic sanctions. Crude oil prices rose, fueling stagflation fears and lifting bond yields, which pressured financial stocks. Bradesco down nearly 2% and Banco do Brasil down about 1%. Utilities also declined, with Axia down 0.7% and Eneva down 1.1%. Suzano slumped nearly 5% after missing its decarbonization target tied to a sustainability-linked bond, resulting in higher interest rates on that debt and related instruments. Petrobras advanced 0.6% on higher oil prices.

Brazil's Ibovespa closed 0.1% higher at 188,162 on Monday as investors carefully evaluated a Pakistan-mediated proposal to end the five-week conflict in the Middle East. While the proposed framework suggests an immediate ceasefire followed by broad diplomatic negotiations within 20 days the market remained cautious after Tehran rejected a temporary reopening of the Strait of Hormuz. The Brazilian real reached its strongest level against the greenback since late 2024 supported by elevated commodity prices and a hawkish domestic interest rate outlook. Petrobras shares gained 1.1% after international oil prices surpassed $110 per barrel while aircraft manufacturer Embraer climbed 1.1% following positive analyst reviews of its first-quarter delivery performance. In the banking sector Banco Bradesco advanced 0.7% and Banco do Brasil rose 0.4% to help offset a 0.4% decline in mining giant Vale. Consumer staples also saw strength as Ambev added 1.4%.

The Ibovespa edged up to trade above 188,500 on Monday as investors weighed prospects for ending the five-week Middle East conflict. Washington and Tehran received a Pakistan-mediated draft plan to end the conflict, though Tehran rejected immediate steps to reopen the Strait of Hormuz. The plan proposes an immediate ceasefire followed by broader negotiations within 15–20 days. Banks posted gains, with Bradesco up 0.6%. Embraer rose 0.4% after Bradesco BBI rated its operational data positively, noting Q1 deliveries exceeded estimates and consensus in commercial, executive, and defense segments. Also, Petrobras gained 1% on higher oil quotes. Other notable performers included Vale up 0.5% and Ambev up 0.6%.