Oil Shock Forces Petrobras Auction Halt as STF Extends Master Probe

Overview

• Escalating U.S.–Israel–Iran hostilities have threatened traffic through the Strait of Hormuz, pushed crude above about $100 a barrel and driven fuel costs higher in Brazil, which still imports roughly 30% of its diesel.
• Brasília suspended PIS/Cofins on diesel imports and sales and proposed that states temporarily zero ICMS on diesel imports with the federal government covering half of the lost revenue.
• The government launched a joint enforcement push with the Federal Police, ANP, tax authorities and consumer agencies to deter unjustified price hikes, with inspections and inquiries already under way and heavy fines possible.
• Petrobras paused a scheduled diesel and gasoline auction to reassess inventories after advancing 10%–15% of deliveries and reported that six third‑party tankers near Brazilian ports had their routes diverted.
• Separately, STF Justice André Mendonça granted the Federal Police a 60‑day extension in the Banco Master/BRB investigation, as Daniel Vorcaro replaced his legal team and his new lawyer met the relator to discuss a potential plea agreement.