The Ibovespa fell nearly 1% to below 182,500 on Monday amid a jump in oil prices and the release of a new Focus survey. Oil prices resumed their rally after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, renewing concerns that energy-driven inflation shocks could keep interest rates higher for longer. Yields moved higher, pressuring credit-sensitive stocks. Major banks fell, with Itau, Bradesco and BB losing about 1%, while utilities also posted losses, with Sabesp shedding nearly 1%. Meanwhile, the BCB’s Focus survey showed that the market raised its 2026 inflation forecast, from 4.92% to 4.99%, while the year-end 2026 Selic forecast remained at 13.50%. A new election poll showed President Lula widening his lead over Flavio Bolsonaro, who is viewed by markets as more fiscally restrictive amid elevated domestic yields and weak business activity. Elsewhere, Vale fell 1% on lower iron ore prices. In contrast, Petrobras rose more than 1%.