The Ibovespa surged 1.60% to close at 185,424 on Wednesday as optimism for a diplomatic resolution in the Middle East drove a broad rally and a decline in future interest rates. Sentiment was bolstered by reports of a 15-point US peace proposal delivered to Tehran which pressured global oil prices and eased inflation concerns domestically. Utilities and financials led the gains with Sabesp advancing 2.4% and Banco Bradesco climbing 2.2%. Industrial and consumer leaders also showed strength as WEG rose 2% and B3 jumped 3.7% amid the improved risk environment. Despite the slump in Brent crude Petrobras remained resilient in positive territory gaining 0.2% while Vale added 1.5%. In contrast the retail sector saw mixed results with Lojas Renner falling 1.3%. Most assets ended the day higher as traders weighed the prospect of de-escalation against continued regional hostilities.