FX.co ★ Ibovespa Gains on US-Iran Peace Deal Prospects

The Ibovespa inched higher on Monday, trading close to the 177,000-point level as growing hopes for a deal to end the war in Iran buoyed risk appetite. US President Donald Trump said on Saturday that a memorandum of understanding on a potential agreement with Iran was “largely negotiated,” while officials from both countries, along with mediators in Pakistan, signaled progress in the talks.

In commodities, oil prices dropped below $100 per barrel on expectations that an agreement could lead to the reopening of the Strait of Hormuz, easing stagflation fears and driving bond yields lower.

In the equity market, bank stocks outperformed: Itaú gained more than 1.5%, and Bradesco advanced over 1%. Exchange operator B3 climbed more than 1.5% after JPMorgan Chase raised its target price for the share. Other notable gainers included Ambev (+0.8%) and WEG (+1.4%). On the downside, Petrobras declined nearly 2%, pressured by the drop in oil prices.