FX.co ★ Ibovespa Tumbles as Middle East Conflict Sparks Global Selloff

The Ibovespa dropped more than 3% on Tuesday, slipping below 183,500 points as a global selloff intensified amid escalating tensions in the Middle East. Rising oil prices, fueled by supply concerns in the Strait of Hormuz, heightened inflation fears and reinforced expectations of a more limited interest rate cutting cycle. With the exception of oil-related names, all sectors declined. Major banks weighed heavily on the index, with Itaú and Bradesco each losing around 4%. Utilities also retreated, including Axia, which fell nearly 4%. Blue chips Ambev (-4.8%), WEG (-3.4%), and Vale (-3.6%) added further downward pressure. In contrast, Petrobras gained more than 1%, supported by the advance in oil prices.