The Ibovespa fell more than 0.5% to trade below 173,000 on Monday as reports that Iran will halt communication with the US cast doubt on a ceasefire renewal. Oil prices rebounded, reviving stagflation concerns and pushing bond yields higher. Financial stocks came under pressure amid expectations of higher borrowing costs and a hawkish monetary outlook, with Santander losing 1% and Bradesco down about 0.5%. Meanwhile, the S&P Global Brazil Manufacturing PMI fell to 49.1 in May from 52.6 in April, signaling a renewed contraction in factory activity and weighing on industrial names such as WEG, which shed nearly 1%. Vale also pressured the index, falling around 1.5% as iron ore prices declined. In contrast, Petrobras gained more than 1%, supported by higher oil prices.