Haddad says Iran conflict should not immediately hit Brazil’s economy
Haddad argued that Brazil is in a “very good moment” for attracting investment. He said that even if short-term turbulence emerges, it should not affect macroeconomic variables
Brazil’s Finance Minister Fernando Haddad said on Monday that U.S. and Israeli attacks against Iran should not have an immediate impact on Brazil’s macroeconomic indicators, while cautioning that the conflict’s trajectory remains hard to predict and is being monitored “carefully” by his ministry.
Speaking in São Paulo at the University of São Paulo (USP) ahead of a keynote lecture to students at the School of Economics, Business, Accounting and Actuarial Science, Haddad argued that Brazil is in a “very good moment” for attracting investment. He said that even if short-term turbulence emerges, it should not affect macroeconomic variables unless the conflict escalates.
“The scale of the conflict will determine a lot… Even if there is short-term turbulence, it should not impact macroeconomic variables—unless, as I said, the conflict escalates,” Haddad said.
He added that the government would continue to track developments to ensure it is prepared should the broader economic environment deteriorate, something he said is currently difficult to foresee.
His comments came as attention focused on global energy shipping routes. Earlier, a senior Iranian Revolutionary Guards official said the Strait of Hormuz was closed and warned Iran would attack any ship attempting to pass through, according to Iranian media reports cited by Reuters.
The Strait of Hormuz is a key chokepoint for global oil flows, and any sustained disruption can feed into international energy prices—an external channel that can raise domestic costs through fuel and transportation, and, in turn, imported inflation pressures.
The military flare-up follows strikes attributed to the United States and Israel against Iran since late February, amid signs the confrontation is widening across the region, according to Reuters reporting.
