FX.co ★ Ibovespa Rises on US-Iran Deal Hopes

The Ibovespa advanced more than 0.5% to trade above 172,000 on Friday, supported by growing optimism over a potential peace agreement between the United States and Iran. Oil prices declined following reports that the two countries may sign a deal to reopen the Strait of Hormuz on the sidelines of next week’s G7 summit, alleviating concerns about energy costs.

Banks outperformed, with Bradesco and Banco do Brasil each adding close to 1%. Utilities also moved higher, led by Axia, which rose nearly 1%. Rede D'Or climbed more than 1.5%, extending gains after completing its third share buyback program on Thursday. Embraer gained over 1% amid reports of new aircraft orders from the Greek government. In contrast, Petrobras fell more than 2%, pressured by the drop in oil prices.

Earlier in the session, sentiment was dampened by stronger-than-expected inflation data. Brazil’s annual inflation rate accelerated to 4.72% in May from 4.39% in April, surpassing market forecasts and reinforcing expectations that the BCB may adopt a more hawkish policy stance.