Brazil: Ibovespa Slides on Geopolitical Risks.

The Ibovespa lost 1.2% to close at 175,739 on Monday following military exchanges between the US and Iran. US and Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, pushing oil prices higher on renewed concerns over crude shipments through the Strait of Hormuz. Energy-driven inflation concerns reinforced expectations that interest rates will remain higher for longer. Financials traded lower, with Itau losing 1.8%, Itausa down 2.5%, and Banco do Brasil shedding 1.6%. Utilities also posted losses, with Axia down 3% and Sabesp retreating 2.4%. Vale fell 1.8% on lower iron ore prices. Other notable laggards included WEG (-4.6%), Rede D'Or (-1.3%), and Embraer (-1.9%). In contrast, Petrobras advanced 2.5% on higher oil prices. Meanwhile, the Focus survey showed lower inflation forecasts for 2026.