Ibovespa Falls on Iran Tensions

The Ibovespa fell 0.8% to close at 191,378 on Thursday as Iran tightened its grip on the Strait of Hormuz, renewing shipping concerns with no sign of resumed peace talks. On Wednesday, Iran captured two ships attempting to exit the Strait and demanded the US lift its naval blockade, which remains in effect despite President Trump's indefinite ceasefire extension. Oil prices rose, fueling fears of energy-driven stagflation and rate hikes. Bond yields climbed, pressuring banks amid concerns over weaker credit demand; Itaú lost 1.9%, Bradesco shed 2.2%, and Banco do Brasil fell 1.7%. Vale dropped 1.4% as iron ore prices declined. Petrobras shares remained flat on uncertain oil futures. In contrast, WEG gained 1.9%, supported by strong Q1 results from ABB, which serve as a positive demand indicator.

The Ibovespa edged down to hover near 192,000 on Thursday as Iran tightened its grip on the Strait of Hormuz, renewing shipping concerns with no sign of resumed peace talks. On Wednesday, Iran captured two ships attempting to exit the Strait and demanded the US lift its naval blockade, which remains in effect despite President Trump's indefinite ceasefire extension. Oil prices rose, fueling fears of energy-driven stagflation and rate hikes. Bond yields climbed, pressuring banks amid concerns over weaker credit demand; Banco do Brasil, Itaú, and Bradesco all edged down. Vale shed 0.5% as iron ore prices fell. Petrobras dropped nearly 1% on uncertain oil futures. In contrast, WEG gained nearly 2%, supported by strong Q1 results from ABB, which serve as a positive demand indicator.

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.