The Ibovespa fell 0.4% to close at 170,507 on Wednesday, pressured by losses in commodity and banking stocks. Petrobras was among the main drags, down 2.6% as oil prices declined on signs that more tankers were moving through the Strait of Hormuz amid progress in US-Iran talks. Vale lost 2.1% amid an internal dispute over its chairman position. Major banks also traded lower after Citigroup cut target prices for several Brazilian lenders, citing a more cautious stance on the sector due to a deteriorating macroeconomic backdrop and rising pressure on asset quality, particularly in consumer lending and agribusiness. Bradesco fell 1.1%, while Banco do Brasil dropped 0.6%. On the upside, WEG gained 2% as it accelerates the expansion of its Rugao unit in China. Embraer rose 1.5% amid renewed speculation over a sale of the C-390 Millennium to Morocco.