Ibovespa Dips Amid Middle East Tensions

The Ibovespa index edged down 0.2% to close near 137,500 on Friday, pressured by escalating Israel-Iran tensions that dampened investor sentiment.

Global markets retreated after Iran retaliated against Israel’s strikes on its nuclear and missile facilities, stoking fears of a wider conflict and driving demand for safe-haven assets.

Investors also remained cautious ahead of updates on a potential US-China tariff truce.

Domestically, focus shifted to the financial transactions tax, as House Speaker Hugo Motta signaled plans to push for a decree suspending the government’s proposed rate hike.

On the corporate front, surging oil prices—up 7% amid Middle East unrest—boosted Petrobras shares by 2.5%.

Meanwhile, risk-sensitive stocks declined, with Vale down 1.1%, Magazine Luiza falling 6.6%, and Bradesco slipping 0.7%.

Embraer dropped 3.1% following a deadly Boeing plane crash in India that claimed 290 lives.