Ibovespa retreats with uncertainty about US-Iran agreement; dollar rises

The Ibovespa resumes its negative signal this Tuesday (26), after orbiting 178 thousand points the day before, with the increase in oil prices on the international market following military attacks by the United States against Iran.

At around 12pm, the Ibovespa fell 0.78%, to 176,421.05 points.

At the same time, the spot dollar rose 0.12%, quoted at R$5.02 on sale.

Bets that the US and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz supported a sharp drop in oil prices the day before, although Washington and Tehran downplayed the chance of an imminent outcome.

This Tuesday, however, markets opened with the news that the US Armed Forces carried out attacks on Monday in southern Iran against targets that included boats trying to lay mines and missile launch sites.

Iran's Foreign Ministry said in a statement that the US violated the ceasefire with attacks in the province of Hormozgan, in southern Iran. As a result, the price of Brent crude oil rose to close to US$100.

"We continue to turn in circles," Swissquote senior analyst Ipek Ozkardeskaya said in a report to clients.

"It's frustrating, because U.S. officials are playing with the markets and the narrative the way a cat plays with a mouse, and there is very little investors can do about it," he added.

*With information from Reuters

Source: CNN