The Ibovespa slipped 0.2% to close at 173,371, as gains in banking shares were insufficient to offset broader market weakness amid renewed fears of an escalation in the Middle East. Oil prices were highly volatile as the conflict between the US and Iran intensified, and the combination of geopolitical risk and energy-driven inflation concerns weighed on investor sentiment.
Utilities retreated, with Sabesp down 0.8% and CPFL off 1.2%. Vale fell 1.4% as iron ore prices declined, pressured by seasonal weakness in Chinese steel demand and shrinking margins at steel mills. Other notable underperformers included WEG (-1.1%) and Rede D'Or (-0.9%).
In contrast, major banks advanced after the BCB’s Focus survey showed that market participants reduced their 2026 inflation projections for the third consecutive week. Itaú gained 0.8% and Bradesco rose 0.7%. Petrobras added 0.6%, supported by higher oil prices.
