The Ibovespa edged down to hover below 173,000 on Tuesday, weighed down by losses in financial stocks. Financials traded lower as elevated oil prices fueled energy-driven inflation concerns. Itausa and Bradesco shed nearly 0.5%, while Itau and Banco do Brasil edged lower. Utilities also posted losses, with Sabesp and Axia down around 0.5%. Other notable laggards included Rede D'Or (-3%) and Vivo (-0.5%). Meanwhile, hopes for diplomacy in the Middle East were boosted by reports that Iran is considering a proposal from mediators for a 10-day ceasefire aimed at paving the way for a lasting peace agreement. However, oil prices remained elevated, supporting Petrobras, which gained nearly 0.5%. Vale rebounded nearly 1% after retreating in the previous session on lower iron ore prices.