FX.co ★ Ibovespa Slides on Geopolitical Risks

The Ibovespa fell 1.2% on Monday, closing at 175,739 points, as markets reacted to escalating military tensions between the US and Iran. Both countries carried out heavy missile and drone strikes over the weekend and into Monday, driving oil prices higher amid renewed fears of disruptions to crude shipments through the Strait of Hormuz. The resulting concerns over energy-driven inflation strengthened expectations that interest rates will stay elevated for a longer period.

Financial stocks weighed on the index, with Itaú down 1.8%, Itaúsa losing 2.5%, and Banco do Brasil slipping 1.6%. Utilities also retreated: Axia dropped 3%, while Sabesp declined 2.4%. Vale fell 1.8% in response to lower iron ore prices. Other notable underperformers included WEG (-4.6%), Rede D'Or (-1.3%), and Embraer (-1.9%).

In the opposite direction, Petrobras gained 2.5%, supported by higher oil prices. On the macroeconomic front, the latest Focus survey indicated lower inflation projections for 2026.