Ibovespa Edges Lower Amid US-Iran Escalation

The Ibovespa edged lower to trade below 174,000 on Friday as the escalating US-Iran conflict kept oil prices elevated. The US and Iran intensified attacks across the Gulf, with their collapsed truce disrupting oil flows through the Strait of Hormuz. The conflict pushed oil prices higher, stoking inflation fears and weighing on financials and the broader market. Bradesco lost more than 0.5%, while Itaú and Itaúsa edged down. Vale extended losses, falling nearly 1% after the US announced a new 25% tariff on Brazilian imports. Other notable laggards included Axia (-0.4%) and Rede D'Or (-0.5%). In contrast, Petrobras advanced nearly 2% on higher oil prices.

The Ibovespa fell 1.2% to close at 173,825 on Thursday after the US announced a new 25% tariff on Brazilian imports. According to the announcement, the new tariff will take effect on July 22. Vale fell 2.0%, while steelmakers also posted losses, with Gerdau down 1.2% and CSN shedding 2.7%. Meanwhile, the conflict in the Middle East pushed oil prices higher on supply concerns, fueling inflation worries. Bond yields also moved higher, weighing on financials and the broader market. Itaú shed 1.4%, Bradesco lost 1.0%, and Itaúsa was down 1.0%. Utilities also traded lower, with Axia losing 1.4% and Sabesp shedding 2.3%. Other notable laggards included Petrobras (-1.7%) and WEG (-1.7%).

The Ibovespa fell nearly 1% to hover around 174,500 on Thursday after the US announced a new 25% tariff on Brazilian imports. According to the announcement, the new tariff will take effect on July 22th. Vale fell more than 1%, while steelmakers also posted losses, with Gerdau and CSN shedding more than 1% each. However, products including beef, coffee, rare earths, energy products, aircraft, and aircraft parts will be exempt from the tariff. Petrobras gained more than 0.5%, also supported by higher oil prices, while Embraer and Minerva were little changed. Meanwhile, the conflict in the Middle East pushed oil prices higher on supply concerns, fueling inflation worries. Bond yields moved higher, weighing on financials and the broader market. Itaú and Bradesco lost about 0.5%, while B3 tumbled more than 2%. Utilities also traded lower, with Axia and Sabesp down about 1%.