FX.co ★ Ibovespa Falls as Iran Rejects Ceasefire

The Ibovespa fell more than 0.5% to trade near 187,000 points on Tuesday as investors monitored escalating tensions in the Middle East. Iran rejected a US proposal for an immediate ceasefire and the reopening of the Strait of Hormuz ahead of US President Trump’s deadline, instead putting forward 10 conditions that include an end to regional conflict, the creation of a safe-passage protocol, and the lifting of economic sanctions.

Crude oil prices climbed, stoking fears of stagflation and pushing bond yields higher, which in turn weighed on financial stocks. Bradesco fell nearly 2%, while Banco do Brasil lost about 1%. Utilities also retreated, with Axia down 0.7% and Eneva down 1.1%.

Suzano dropped nearly 5% after failing to meet a decarbonization target linked to a sustainability-linked bond, triggering higher interest costs on that bond and related instruments. In contrast, Petrobras rose 0.6%, supported by the advance in oil prices.