Shares of Brazil’s major oil producers fell sharply on Monday as crude prices retreated following a pause in regional military attacks.
Petrobras (PBR) and PetroRecôncavo (PRIO3.SA) were among the worst performers on the benchmark Ibovespa index, alongside Brava (BRAV3.SA) and PRIO, as the broader energy sector sold off.
The selloff reflects a rapid unwinding of the geopolitical risk premium that had supported energy prices in recent sessions.
With military activity in the Middle East pausing, market participants are repricing the immediate supply disruption risk lower.
This dynamic mirrors a broader trend where energy equities remain highly sensitive to shifts in regional conflict intensity.
The move highlights the volatility inherent in the current energy market regime.