Iran’s decision to permit full passage through the Strait of Hormuz during the Israel-Lebanon ceasefire immediately reversed the supply risk premium that had supported oil prices. U.S. President Donald Trump announced that Lebanon and Israel agreed to a 10-day ceasefire, with potential U.S.-Iran negotiations scheduled for the weekend, fueling expectations that regional hostilities may be nearing resolution.
The petroleum sector rout extended beyond Petrobras. Prio (PRIO3) dropped 7% while Brava Energia (BRAV3) fell 6.28%, leading Ibovespa decliners. The broader energy selloff contrasted sharply with mining stocks, where Vale (VALE3) gained 2.64% following positive first-quarter production results and a 3.1% advance in Dalian iron ore futures.
Financial sector performance remained mixed amid ongoing government discussions about credit measures to address elevated household debt levels. Bradesco (BBDC4) rose 1.97% while Itaú Unibanco (ITUB4) slipped 0.38%. Banco do Brasil announced issuance of at least $500 million in Nature Bonds.
Retail stocks faced pressure after Brazil’s Federal Revenue Service notified approximately 3,000 companies regarding legally unsupported tax credit practices totaling BRL 10 billion in PIS/Pasep and Cofins calculations. While the agency did not name specific companies, it indicated higher incidence within the supermarket segment. Assaí (ASAI3) plummeted 8.86% on the disclosure.
The Brazilian real strengthened to R$ 4.9833 per dollar, marking a 0.19% daily decline for the greenback and accumulating a 9.03% year-to-date depreciation. The currency reached an intraday low of R$ 4.9508, its strongest level in over two years.
This article was curated and published as part of our South American energy market coverage.
