Ibovespa Slides on US-Iran Ceasefire Doubts

The Ibovespa lost over 1.6%  to close at 192,889 on Wednesday amid uncertainty over the US extension of the ceasefire with Iran, as optimism remained subdued despite the pause in hostilities. The Strait of Hormuz remained largely closed, with no signs of renewed US-Iran negotiations, and oil prices rose on reports of gunfire attacks on container ships, fueling fears of energy-driven stagflation and rate hikes. Bond yields climbed, pressuring banks, as concerns over weaker credit demand intensified. Itaú lost 2.9%, Bradesco shed 2.7%, and Banco do Brasil fell 1.6%. Utilities also declined, with Sabesp shedding 1.8% and Axia down 1.3%. Vale lost 1.7% despite higher iron ore prices, as rival BHP concluded talks with China Mineral Resources Group. In contrast, Petrobras gained 1.4% on stronger oil prices.

The Ibovespa lost over 0.5%  to trade below 195,500 on Wednesday amid uncertainty over the US extension of the ceasefire with Iran, as optimism remained subdued despite the pause in hostilities. The Strait of Hormuz remained largely closed, with no signs of renewed US-Iran negotiations, and oil prices rose on reports of gunfire attacks on container ships, fueling fears of energy-driven stagflation and rate hikes. Bond yields climbed, pressuring banks, as concerns over weaker credit demand intensified. Itaú, Bradesco, and Banco do Brasil each fell about 1%, while utilities declined, with Sabesp shedding nearly 1% and Axia down 0.4%. Vale lost nearly 1% despite higher iron ore prices, as rival BHP concluded talks with China Mineral Resources Group. In contrast, Petrobras gained 1.5% on stronger oil prices.

The Ibovespa edged up to trade above 196,000 on Monday, boosted by gains in energy and utilities. The energy sector was lifted by a sharp rebound in oil prices, triggered by renewed tensions after the US seized an Iranian cargo ship and Iran reasserted control over the Strait of Hormuz. In utilities, Axia gained more than 1.5% and Sabesp rose over 2%. In contrast, major banks declined as the oil surge reignited stagflation fears, pressuring the outlook for banks due to elevated rates and low credit demand. Bradesco lost near 1% and Itaú shed 0.4%. Vale also fell over 1% as freight costs rose on higher energy prices.