The Ibovespa rose 0.7% to close at 186,596 on Monday, recovering after ending the previous week lower as international oil prices declined. Oil fell on hopes for diplomatic progress between the US and Iran, with Iranian President Masoud Pezeshkian expected at the United Nations General Assembly in New York this week and US President Donald Trump saying he would be open to meeting him. Lower oil prices helped cool concerns about energy-driven inflation, allowing bond yields to ease and supporting credit-sensitive stocks. Financial shares advanced, led by Itaú, up 1.8%, and Bradesco, up 0.9%, while utility Axia gained 2.5%. The financial market cut its 2026 Selic (Brazil's benchmark interest rate) forecast to 13.50% from 13.75%, while lifting its 2026 inflation forecast to 4.92% from 4.90%, the BCB's Focus Bulletin showed.