Ibovespa Edges Lower on US-Iran Standoff

The Ibovespa fell 0.3% to close at 190,745 on Friday as investors monitored the standoff between the US and Iran. Tehran demonstrated control over the Strait of Hormuz in response to the US blockade, with few signs of reopening soon. Brent prices remained high, threatening to exacerbate inflation fears and global growth concerns while pressuring major banks and the broader index. Bradesco lost 0.6% and Banco do Brasil shed 1.3%. Petrobras dropped 1.3% after relinquishing strategic rights in Braskem, which rose 1.2%. In other news, Suzano (-2.2%) will increase pulp prices for customers in Europe and the Americas starting in May, amid rising costs from the Middle East conflict. On the upside, Usiminas gained 4.4% after more than doubling Q1 profits to R$896 million. Sabesp edged up after receiving approval from Brazil's competition authority to assume 100% ownership of Paulista Geradora de Energia.

The Ibovespa edged down to the 191,000 mark on Friday amid international market nervousness over Middle East tensions, as investors monitored a standoff between the US and Iran. Tehran responded to the US blockade by demonstrating its control over the Strait of Hormuz, with few signs the strait will reopen soon. Brent remained near $105, threatening to exacerbate inflation fears and global growth concerns while pressuring major banks and the broader index. Itaú and Bradesco edged lower, while Banco do Brasil fell over 1%. Meanwhile, Petrobras shed more than 1.5% after relinquishing its strategic rights in Braskem, which gained 1.8%. Other notable laggards included Ambev, down 1.1% and Rede D'Or, down 0.5%. On the upside, Usiminas surged about 7.5% after more than doubling profits in Q1 to R$896 million, while Sabesp gained over 1.5% after obtaining approval from Brazil's competition authority to assume 100% ownership of Paulista Geradora de Energia.

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.