FX.co ★ Ibovespa Slips Amid Rising US-Iran Tensions

The Ibovespa slipped below 197,000 on Monday, pulling back from Friday’s record high as risk aversion increased following the collapse of US–Iran peace talks over the weekend and reports that the US Navy is preparing to blockade Iranian ports. The resulting spike in oil prices reignited inflation concerns amid heightened supply-shock risks, pushing bond yields higher and reviving fears of weaker credit demand and potential interest rate hikes, which weighed on the banking sector. Itaú fell more than 1.5%, while Bradesco and Banco do Brasil each lost close to 1%. Utilities also declined, with Axia and Sabesp both down around 1%. Other notable laggards included Ambev, which dropped 1.2%, Rede D’Or, down 1.4%, and WEG, off 0.9%. In contrast, Petrobras advanced nearly 2%, supported by the jump in oil prices.