The Ibovespa fell 0.9% to close at 185,629 on Wednesday amid renewed political risks in Brazil and escalating Middle East hostilities. Supreme Court Justice Flavio Dino ordered the reinstatement of Federal Police chief Andrei Rodrigues, granting an emergency request a day after Justice Andre Mendonca mandated his removal. Mendonca, who is overseeing a sprawling fraud investigation into failed lender Banco Master, had accused the Federal Police of illegally surveilling him and other public officials. The crisis reflects Brazil’s wider political polarization ahead of the October presidential election. Meanwhile, intensifying Middle East hostilities pushed oil prices higher, rekindling inflation fears. Major banks posted losses, with Itau down 2% and Bradesco losing 2.4%. Utilities also closed lower, with Axia down 1.9%. WEG (-1.8%) and Ambev (-1.5%) also weighed on the index. Petrobras rose 0.7% on higher oil prices.