FX.co ★ Ibovespa Falls on Iran Tensions

The Ibovespa fell 0.8% on Thursday, closing at 191,378, as Iran tightened its control over the Strait of Hormuz, reigniting concerns about maritime trade routes and with no indication that peace talks will resume. On Wednesday, Iranian forces seized two vessels attempting to leave the Strait and demanded that the United States lift its naval blockade, which remains in place despite President Trump’s decision to extend the ceasefire indefinitely.

Oil prices climbed, heightening fears of energy-driven stagflation and the prospect of further interest rate hikes. Government bond yields also advanced, putting pressure on banking stocks amid worries about softer credit demand: Itaú declined 1.9%, Bradesco fell 2.2%, and Banco do Brasil lost 1.7%.

In the commodities space, Vale retreated 1.4% following a drop in iron ore prices. Petrobras shares were little changed, as investors weighed the uncertain outlook for oil futures. Bucking the broader market trend, WEG gained 1.9%, supported by strong first-quarter results from ABB, seen as a positive signal for underlying demand.