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Brazil Extends Fuel Price Controls as Middle East Conflict Pressures Global Energy Markets

Brazil's government has prolonged measures designed to cap fuel price increases for an additional two months, responding to sustained pressure from Middle East geopolitical tensions that have disrupted global crude supplies. The extended policy reflects broader efforts across multiple economies to shield consumers and businesses from volatile energy costs.

Regional supply arrangements underscore the scope of disruption. Namibia secured an emergency three-month fuel contract with Vitol Group from July through September to buffer against price shocks. Analysts warn that prolonged closure of major shipping routes could drive crude to fresh highs this summer, complicating inflation management. India's finance ministry has flagged fuel price increases as a key inflation risk ahead of central bank policy decisions. The extended Brazilian measures signal government commitment to intervention as global energy markets navigate sustained supply constraints.