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Ibovespa Slips Amid Middle East Tensions

The Ibovespa shed near 1% to below 166,000 on Friday, extending its seven-month low as the impasse in negotiations to end the war in the Middle East pushed oil prices higher. Oil and gas prices were on track for strong weekly gains as the US threatened to intensify economic pressure on Iran, including by extending the naval blockade. Energy-driven inflationary pressures weighed on financials and other credit-sensitive shares. Banco do Brasil, B3 and Caixa Econômica shed near 1%, while Itaúsa lost 0.5%. Utilities also traded lower, with Sabesp down over 1% and CPFL losing over 3% despite reporting an 21.3% annual rise in net profit, as growth in its industrial sector was modest and net debt rose 19.2%. Meanwhile, Cemig gained nearly 3% after reporting an 8.8% rise in EBITDA. Elsewhere, Raízen (-4%) posted a net loss in the first quarter of fiscal 2026/27. Braskem (+3%) reported net income of R$3.33 billion, reversing a loss. MBRF (+5%) reported net income of R$69 million in 2Q26.

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