Brazil refiners fueled scheme linked to U.S.-designated terrorist group, documents show — Reuters

Reuters reported that accounting ledgers of Manguinhos, Refinaria Riograndense and Refit show 4.8 million barrels of unrefined product sold between 2024 and 2025 through a complex buyer chain routed through Paraguay. The U.S. Treasury's Office of Foreign Assets Control added three front companies in that chain to its Lebanese Hezbollah finance list in summer 2025.

Manguinhos spokesperson Andre Coelho said "sales were made in line with legal certification documents." Refit said it "halted sales before the OFAC listing date." Brazil's Federal Police Foreign Operations Director Andrei Passos Rodrigues confirmed at a press briefing that "the documents are under review and an audit has been opened." U.S. Treasury spokesperson Christine Sniffin said "OFAC is reviewing the need for additional sanctions action."

Petrobras shares fell 2.8% on the B3 exchange to 38.40 reais; the Bovespa index dropped 0.7%. The real weakened 0.9% against the dollar to 5.28. Eurasia Group analyst Christopher Garman wrote that "the report could affect the Lula administration's fuel tax reform timetable." Not investment advice.