Ibovespa Falls on Renewed US-Iran Tensions

The Ibovespa fell 0.2% to close at 172,021 on Tuesday as renewed tensions between the US and Iran lifted oil prices and bond yields. Reports that the US would revoke the waiver allowing Iran to sell its oil, following recent attacks on tankers in the Strait of Hormuz, fueled concerns over energy-driven inflation and higher borrowing costs. Financial stocks traded mostly lower, with Bradesco down 0.6%. Separately, Itaúsa (+0.2%) said it could subscribe between BRL 730 million and BRL 1.5 billion in Aegea's proposed capital increase. Vale fell 2% on lower iron ore prices, while WEG (-0.8%), Ambev (-1.7%), and Embraer (-1.1%) also declined. In contrast, Petrobras rose 1.8% as oil prices jumped.

The Ibovespa traded little changed near 172,500 on Tuesday on fresh geopolitical escalation between Iran and the US. Oil prices, which had retreated to near pre-conflict levels following the Iran-Israel ceasefire, edged higher after reports of new attacks on vessels in the Strait of Hormuz. The rebound supported Petrobras, which gained more than 0.5%, but also pushed bond yields higher on renewed inflation concerns, limiting gains for financials and the broader market. Major banks traded mixed, with Itaú edging up and Bradesco slightly lower. Separately, Itaúsa (+0.2%) said it could subscribe between R$730 million and R$1.5 billion in Aegea's proposed capital increase, aimed at strengthening its capital structure and accelerating deleveraging. Vale fell nearly 1% on lower iron ore prices.

The Ibovespa fell 0.9% to close at 172,447 on Monday as investors awaited a public hearing in Washington on the US trade investigation into Brazil, which could lead to additional tariffs on Brazilian exports. The hearing will consider a proposed 25% tariff after the USTR identified what it described as "unreasonable" trade practices. Exporters led the declines, with Vale down 1.3%, Petrobras losing 1.3%, and Minerva slipping 0.8%. Petrobras was also pressured by lower oil prices after OPEC+ agreed to raise output targets from August and shipping through the Strait of Hormuz continued to normalize. Elsewhere, Ambev dropped 2.5% on concerns that third-quarter sales in Latin America could miss expectations after Brazil and Mexico were eliminated from the FIFA World Cup.