FX.co ★ Ibovespa Falls as Middle East Tensions Weigh

The Ibovespa fell about 0.5% on Thursday, slipping below the 177,000 mark amid escalating tensions in the Middle East. Oil prices jumped after renewed attacks raised fresh concerns over global energy supplies. Houthi rebels claimed to have struck two Saudi oil tankers as part of a naval blockade, compounding disruptions already triggered by Iran’s near-total closure of the Strait of Hormuz.

The spike in oil prices revived inflation worries and reinforced expectations that interest rates may stay higher for longer. Financials underperformed, with Itaú, Bradesco, and Itaúsa all retreating around 1%. Utilities also declined, as Axia slipped 1% and Sabesp lost more than 1.5%.

WEG edged down about 0.5% after surging 10% in the previous session on the back of robust operating margins and strong returns on invested capital. Other notable decliners included Ambev (-0.7%), Rede D’Or (-3%), and Embraer (-1%). Bucking the broader trend, Petrobras advanced 1.5%, supported by the rally in crude prices.