The Ibovespa inched lower on Monday, hovering near the 177,000 level after a spike in geopolitical tensions between the United States and Iran. Both countries carried out heavy missile and drone attacks over the weekend and into Monday, driving oil prices higher amid renewed worries about crude flows through the Strait of Hormuz. The resulting energy-driven inflation concerns strengthened expectations that interest rates will stay elevated for longer.
Domestically, the Focus survey pointed to lower inflation projections for 2026. Among financials, performance was mixed: Bradesco rose 0.5%, Itaú traded around unchanged levels, while Itaúsa and Banco do Brasil slipped. Utilities underperformed, with Axia edging lower and Sabesp retreating nearly 1%. Vale dropped almost 1%, pressured by weaker iron ore prices. Other notable decliners included WEG (-2%), Rede D'Or (-1%), and Embraer (-1%). In contrast, Petrobras gained more than 2%, supported by the advance in oil prices.
