The dollar opened higher in Brazil on Monday, marking the first trading session following a series of military attacks by the United States and Israel against Iran, which included targeted strikes that resulted in the deaths of key Iranian leaders. In retaliation, Iran launched attacks on various locations across the Middle East, further escalating tensions in the region. The conflict has led to military engagements not only in Iran but also in neighboring countries and has drawn in groups such as Hezbollah, increasing fears of wider regional instability.

As the situation unfolded, the price of oil surged dramatically, reflecting heightened geopolitical tensions; it jumped over 13%, the highest point since mid-2025. This spike in oil prices stems from the potential threats to supply chains and escalated military actions in the Gulf region. Investors are closely monitoring the implications of this conflict, as it not only affects the energy markets but also has systemic repercussions for currencies linked to commodity prices, including the Brazilian real.

In the Brazilian market, the US dollar was trading at R$ 5.1577, marking an increase of 0.44% compared to the previous session. Such fluctuations in currency rates typically reflect the broader international market responses to crises and geopolitical developments. This situation suggests that Brazilian economic stability may be further challenged as external conflicts continue to influence domestic financial markets.