The Ibovespa fell nearly 1% to below 170,000 on Monday as markets assessed imminent U.S. sanctions against Iran, which could further restrict Iranian oil flows and push prices higher, renewing inflationary pressure. The Focus Survey showed the market raising its 2027 inflation forecast to 4.25% from 4.24%, while keeping its end-2026 Selic rate (Brazil’s benchmark interest rate) forecast at 13.75% for a third consecutive week after it had declined from 14%. The 2026 GDP growth forecast fell to 1.95% from 1.98%. Itaú, Bradesco, Itaúsa and Banco do Brasil each lost about 1%, while Petrobras plunged 4.5% as oil prices retreated amid profit-taking before the sanctions announcement. Sabesp also fell more than 1%. Separately, a Datafolha poll placed President Lula and Senator Flávio Bolsonaro narrowly within a statistical tie in a potential presidential-election runoff.