The Ibovespa lost 0.5% to close at 175,744 on Wednesday as investors assessed Brazil’s latest inflation data and monitored developments in the Middle East. Brazil’s mid-month inflation rose to 4.64% in May from 4.37% in April, above forecasts of 4.55%, reinforcing expectations that the central bank may keep interest rates elevated for longer. Meanwhile, prospects for a US-Iran deal to end the war and restore energy flows through the Strait of Hormuz remained uncertain. The US denied an Iranian media report on a draft interim agreement stating that traffic through Hormuz could return to normal within a month after the deal takes effect. Still, oil prices declined, weighing on Petrobras, which fell 1.4%. Utilities also traded lower, with Axia down 1.8%. Other notable laggards included B3 (-2.7%) and Rede D'Or (-1.7%). Major banks helped limit losses, with Bradesco up 0.9% and Itau gaining 0.6%. Embraer rose 1.5% after Bradesco BBI reiterated its buy recommendation on the stock.