The Ibovespa fell on Monday morning, dragged down by a broad sell-off in international markets following President Donald Trump’s decision to reinstate a naval blockade on Iran.
The escalation in geopolitical tensions has triggered fresh volatility across global equities, with Brazilian investors reacting to the deteriorating risk environment.
The move by the US administration marks a significant hardening of its stance toward Tehran, reversing previous diplomatic de-escalation efforts.
Markets are pricing in the potential for broader conflict in the Middle East, which threatens to disrupt energy supplies and increase shipping costs.
This development follows a period of heightened uncertainty after Trump declared the ceasefire with Iran "over," reigniting fears of military confrontation.
Global equity markets have already shown sensitivity to these developments.