Ibovespa Falls on Renewed US-Iran Tensions

The Ibovespa lost 0.7% to close at 176,589 on Tuesday after new US attacks on Iran reduced expectations that a peace agreement could be reached soon. The latest strikes renewed uncertainty over when the Strait of Hormuz might reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates, lifting bond yields and pressuring equities. Major banks posted losses, with Itaú down 0.8%, Banco do Brasil shedding 2.4%, and Bradesco losing 1.5%. Utilities also traded lower, with Axia down 2%. Vale fell 0.8% as iron ore prices tumbled. Elsewhere, Rede D'Or gained 1.1% after signing an investment agreement with Atlântica, a group formed by two indirect subsidiaries of Bradesco Saúde, related to the future construction and operation of a hospital in Rio de Janeiro. São Martinho lost 1.5% despite reporting EBITDA above forecasts in Q1 2026.

The Ibovespa edged down to trade below 177,500 on Tuesday after new US attacks on Iran reduced expectations that a peace agreement could be reached soon. The latest strikes renewed uncertainty over when the Strait of Hormuz might reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates. Major banks posted losses, with Santander, Bradesco, and Itaú all falling close to 1%. Utilities also traded lower, with Axia down more than 1%. Elsewhere, Rede D'Or lost over 1% after signing an investment agreement with Atlântica, a group formed by two indirect subsidiaries of Bradesco Saúde, related to the future construction and operation of a hospital in Rio de Janeiro. São Martinho also fell more than 1% despite reporting EBITDA above forecasts in Q1 2026. On the trade front, Japan is set to begin negotiations for an Economic Partnership Agreement with Mercosur.

The Ibovespa rose 0.9% to close at 177,816 on Monday, as investors welcomed signs that the US and Iran were negotiating an end to their conflict. Reports suggested Iran could reopen the Strait of Hormuz within 30 days of a potential agreement, while the ceasefire reached in early April is expected to be extended by 60 days, allowing further talks on Iran’s nuclear program. Oil prices fell below $91 per barrel, easing inflation concerns and pushing bond yields lower, which supported financial stocks. Itaú climbed 2.3%, while Bradesco gained 2.5%. B3 jumped 3.6% after JPMorgan raised its target price for the stock. Other notable gainers included WEG (+1.4%) and Ambev (+1.9%). Meanwhile, Petrobras fell 2.4% amid the decline in oil prices.