Sources say that Brazil's Petrobras has held off on raising fuel prices amid tensions with Iran.

Petrobras, the Brazilian oil company, is closely watching geopolitical tensions that have been driving up global oil prices in recent weeks. However, it does not intend to adjust domestic fuel prices at this time, according to two sources.

Sources, who spoke on condition of anonymity said that the state run oil giant was waiting for a sustained change in Brent crude price before considering any changes to prices.

The global benchmark Brent price fluctuated on Monday. It reached a five-month peak before dropping 1% to $76.31 per barrel. Markets were trying to gauge the effect of U.S. Airstrikes on Iran on the transit of oil via the Strait of Hormuz.

One of the sources stated that "everyone is worried about the geopolitical environment." We've eliminated the need to react quickly to volatility with our pricing policy. "We don't have to make price changes immediately."

One source said that if Brent prices continue to rise above $80, it may be necessary to make adjustments. One source said that the current price was largely influenced by political tensions, and prices could drop to $65 if things eased.

Petrobras has declined to comment.

In 2023, the firm ditched its more market-based price policy for one that allowed it to smooth out fluctuations in prices while still considering factors like global crude oil prices and foreign exchange rates. (Reporting and editing by Mark Porter, Kylie Madry and Rodrigo Viga Gaier)

(source: Reuters)