FX.co ★ Ibovespa Hits Record High on Middle East Peace Hopes

The Ibovespa climbed to a record high of around 199,000 points on Tuesday, supported by rising expectations of a resolution to the conflict in the Middle East, with US and Iranian negotiators potentially resuming talks in Islamabad this week. Oil prices declined on hopes that an end to conflict-related supply disruptions is nearing, easing concerns over stagflation and further interest rate hikes and, in turn, reducing pressure on banking stocks. Itaú and Bradesco each advanced nearly 1%. Utilities also traded higher, with Axia gaining about 1% and Sabesp adding more than 0.5%. Among other notable movers, Embraer rose 1.2% and Rede D'Or climbed 1.4%. Bucking the trend, Petrobras slipped more than 1% in response to lower oil prices, while WEG dropped over 2% amid downbeat expectations for its Q1 2026 results, due later this month.