The ongoing war in the Middle East, particularly the closure of the Strait of Hormuz, is having a significant impact on the Brazilian economy, specifically through the rising prices of oil. As of Thursday, the price of crude oil reached $115 per barrel, which has led to an increase in fuel and energy costs. Over the past week, the average price of diesel in Brazilian gas stations rose by more than 11%, from R$6.08 to R$6.80, as reported by the National Agency of Petroleum, Natural Gas, and Biofuels (ANP).

Diesel is a critical fuel for logistics in Brazil's economy; thus, when its price increases, it affects various sectors, including trucking, food prices, industrial products, and services. This cascading effect from rising diesel prices can strain consumer wallets and may lead to higher costs across the board. Experts indicate that inflationary pressure could become evident in about a month, depending on the conflict's intensity and the duration of the Strait's closure.

Fábio Romão, an economist from Logos Economia, highlights that indirect price increases caused by the surge in oil prices will trickle down to consumers, which could exacerbate inflation concerns in Brazil. As the situation evolves, Brazilian households may face rising living costs, prompting a need for careful monitoring of geopolitical events and their implications for local economies.