Iranian Conflict: Oil Volatility at $120/Barrel Complicates Brazilian Budget

Brazil's Finance Ministry is preparing to publish new macroeconomic projections for 2026 against a backdrop of severe oil market instability linked to the Iranian conflict. According to two sources familiar with the matter, this update, expected within two weeks, aims to refresh the assumptions used in budget preparation. The first bimonthly report on revenue and expenditure revisions is due on March 24. This document will determine whether spending freezes are necessary to comply with current budgetary rules.