The Ibovespa dropped nearly 1% to below 166,000 on Friday, extending its slide to a seven-month low as stalled negotiations to end the war in the Middle East pushed oil prices higher. Oil and gas were headed for strong weekly gains after the US threatened to intensify economic pressure on Iran, including by extending the naval blockade, adding to inflation concerns that weighed on financials and other credit-sensitive shares. Banco do Brasil, B3 and Caixa Econômica each fell around 1%, while Itaúsa lost 0.5%. Utilities also weakened, with Sabesp down more than 1% and CPFL off more than 3% even after the company reported a 21.3% annual increase in net profit; investors also assessed modest growth in its industrial segment and a 19.2% rise in net debt. Some earnings reactions were positive: Cemig rose nearly 3% after posting an 8.8% increase in EBITDA (earnings before interest, taxes, depreciation and amortization), Braskem gained 3% after reporting net income of R$3.33 billion and reversing a prior loss, and MBRF climbed 5% after reporting net income of R$69 million in 2Q26. Raízen fell 4% after posting a net loss in the first quarter of fiscal 2026/27.