The Ibovespa fell more than 1.6% on Wednesday, closing at 192,889, as uncertainty surrounding a possible US extension of the ceasefire with Iran weighed on sentiment. Optimism remained muted despite the pause in hostilities. The Strait of Hormuz stayed largely closed, with no indication of renewed US-Iran negotiations, while oil prices climbed following reports of gunfire targeting container ships, heightening fears of energy-driven stagflation and further interest rate hikes.
Rising bond yields added pressure to banking shares amid mounting concerns over weaker credit demand. Itaú dropped 2.9%, Bradesco slid 2.7%, and Banco do Brasil declined 1.6%. Utilities also traded lower, with Sabesp down 1.8% and Axia retreating 1.3%.
Vale slipped 1.7% despite higher iron ore prices, after rival BHP wrapped up talks with China Mineral Resources Group. In contrast, Petrobras advanced 1.4%, supported by the rally in oil prices.
