Brazil Reaches Record Trade and Oil Sales With China Amid Persian Gulf Crisis

China turned to Brazil for oil after losing Persian Gulf supplies due to the Strait of Hormuz crisis, driving trade volume between Brazil and China to a record $142 billion by September 2026. Data from the Brazil-China Business Council shows Brazil maintained a $26.1 billion trade surplus with China, backed by a record $21.8 billion in oil sales, which marked a 49-percent increase compared to the previous year.

Soybeans remained Brazil's largest export to China at 35.4 percent, while oil grew to 25.8 percent. Meanwhile, Brazilian beef exports dropped by 8.5 percent because of Chinese caps and punitive tariffs meant to protect local suppliers. China now purchases half of all Brazilian oil exports, buying over a million barrels of crude daily and sometimes exceeding 1.6 million barrels. India follows as the second-biggest customer at about 238,000 barrels per day, contributing to a 165-percent increase in Brazilian sales to India and an overall 28.7-percent rise in Brazilian oil exports globally.

Growth in Brazilian oil exports has begun tapering off as Persian Gulf oil shipments recovered and traffic through the Strait of Hormuz increased. However, future Iranian attacks on commercial shipping could potentially shift China's oil interest back toward Brazil. Although analysts noted Brazil lacks the capacity to entirely replace Persian Gulf heavyweights, the export boost provided a vital lift to the Brazilian economy following China's beef tariffs. Additionally, Brazil's oil is compatible with Asian refineries seeking to avoid supply chain risks from the Iran conflict. Japan and South Korea have expressed interest in purchasing more Brazilian crude, and the Brazilian government has actively pursued them as customers, while production declined among regional competitors Colombia, Ecuador, and Peru.