Ibovespa Erases Gains Despite Strait of Hormuz Opening

The Ibovespa erased its early gains to close 0.55% lower at 195,734 on Friday, retreating to levels last seen on April 9th. While the reopening of the Strait of Hormuz initially boosted sentiment, a 9.86% plunge in oil prices ($85.35) weighed heavily on the index. Petrobras was the main laggard, slumping 5.05% as it shed earlier gains from the announcement of its acquisition of a stake in offshore block 3 in São Tomé and Príncipe. In contrast, Vale rose 1.51% following resilient Q1 production data. The banking sector mostly supported the broader market as bond yields fell, with gains for Banco do Brasil (+0.78%), Santander Brazil (+0.70%), and Bradesco (+0.77%), while Itaúsa fell 0.27%. Other notable movers included Rede D'Or (+1.53%) and WEG (+0.54%), while Eletrobras fell -2.81% and Ambev shed -0.78%.

The Ibovespa gained nearly 0.5% to trade above 197,500 on Friday, after Iran declared the Strait of Hormuz open. Iran’s Foreign Minister Abbas Araghchi confirmed the Strait is now fully open to all commercial vessels for the remainder of the ceasefire. Oil prices plummeted and bond yields fell, supporting banking stocks and the broader market. Itaú and Banco do Brasil each rose nearly 2%, while Bradesco gained about 2.5%. In addition, Vale climbed more than 1.5% on resilient Q1 2026 production and sales, prompting Itaú BBA to slightly raise its Ebitda proforma estimate. Utilities also advanced, with Axia and Eneva each up 3%. Other notable gains included Ambev (+1.5%), WEG (+1%), Embraer (+2.5%), and Rede D'Or (+2%). Petrobras, however, slumped over 4% on falling oil prices, shedding earlier gains from the announcement of its acquisition of a stake in offshore block 3 in São Tomé and Príncipe.

The Ibovespa fell 0.46% to close at 196,819.00 on Thursday, retreating from recent highs despite an extra lift after President Trump announced a 10-day ceasefire between Israel and Lebanon. While optimism over reopening the Strait of Hormuz supported sentiment, it wasn't enough to sustain the index. Oil prices rose amid supply uncertainty, significantly boosting Petrobras by 4.39%, but this was offset by broader market weakness. Vale dropped 1.06% and Ambev tumbled 2.59% following a UBS downgrade to Sell, while WEG led the losses with a 3.26% decline. Major banks also struggled, with Itaúsa and Banco do Brasil falling 1.53% and 0.86% respectively. On the data front, the IBC-Br rose 0.6% monthly in February, beating forecasts due to a 1.2% industrial expansion, although the index continues to reflect an annual contraction of 1.3%.