Brazil's Ibovespa traded below 186,000 on Thursday as an escalating dispute between Supreme Court justices Alexandre de Moraes and André Mendonça heightened political uncertainty ahead of October's presidential election. The confrontation centers on failed lender Banco Master, which is under investigation in a bank fraud case, and Mendonça's disclosure of private messages allegedly sent to Moraes, raising concerns about the court's credibility. Oil extended its rally after Washington and Tehran carried out the biggest wave of attacks on shipping in the Strait of Hormuz on Wednesday, while global yields rose on fears that inflation could persist. Financial stocks weakened, with Itaú down 0.5% and BB Seguridade losing nearly 2%. Vale fell 2% and CSN Mineração dropped more than 3.5% as iron ore prices declined, while Petrobras gained 1.5% on higher oil prices. In the previous session, the index fell 0.9% to close at 185,629 after a separate dispute over the Federal Police chief's position.