The Ibovespa edged higher to trade close to 186,000 on Tuesday, lifted by gains in Petrobras. Oil prices extended a rally amid supply disruptions in the Middle East after Saudi Arabia shut down a key pipeline bypassing the Strait of Hormuz on Monday. Petrobras gained more than 1%. Meanwhile, markets expect the Selic easing cycle to continue on Wednesday, with the rate forecast to fall to 13.75% from 14%, as recent inflation data remained within the BCB’s tolerance range. In contrast, the US Fed is expected to deliver a 25-basis-point rate hike. Financial stocks were mostly muted, while utilities traded largely higher, with Sabesp rising more than 1%. Political uncertainty remained elevated amid the ongoing Supreme Court crisis, while new election polls confirmed a close presidential race between President Lula and Flavio Bolsonaro.