The Ibovespa fell 0.8% on Wednesday, closing at 170,653 points, as renewed tensions between the United States and Iran heightened global risk aversion. President Trump declared that the memorandum of understanding with Iran aimed at ending the conflict was "over," rekindling fears of potential disruptions to global energy supplies.
The resulting increase in oil prices revived concerns about energy-driven inflation and the prospect of higher interest rates, putting pressure on financial stocks and the broader market. Among the major banks, Itaú slid 1.3%, while Bradesco declined 0.7%.
Vale dropped 4.6% after the conclusion on Tuesday of a hearing on the USTR’s proposed 25% tariff on Brazilian goods. The stock also came under additional pressure following the announcement of the immediate resignation of Chairman Daniel Stieler. Other exporters moved lower as well, with Embraer shedding 3%.
In contrast, Petrobras advanced 3.1%, supported by the rally in oil prices, which buoyed the energy sector.