In Brazil, fuel prices for diesel and gasoline are on the rise, primarily driven by the ongoing geopolitical tensions affecting supply chains. The Brazilian states are likely to reject a proposal from the federal government aimed at reducing the ICMS tax on diesel, reflecting resistance to federal interventions in state revenue. This situation puts additional pressure on consumers, who are already feeling the strain from increasing costs in various sectors of the economy.

In political news, President Lula has confirmed Dario Durigan, the Deputy Minister of Finance, as the successor to Fernando Haddad, who is set to depart from his ministerial role today to run for the governorship of São Paulo. This reshuffling in the ministry reflects the government's strategy to stabilize its economic policies while preparing for upcoming elections. The market will be observing how this transition impacts fiscal policies and public perception.

Furthermore, China's recent decision to restrict fertilizer exports poses a significant concern for Brazil, which heavily relies on Chinese supplies for its agricultural sector. The implications of these restrictions could extend beyond price increases to potential impacts on crop yields and farming sustainability in Brazil, further aggravating the situation for farmers already dealing with higher input costs.