China bought half of Brazil’s oil exports as Iran war shut Hormuz, driving sales to record

Brazil’s oil sales rose because the conflict made Gulf supply routes less dependable. The Strait of Hormuz carries major oil shipments, so threats to that route encouraged China to look elsewhere. Brazil offered a large alternative source outside the immediate disruption zone.

China’s purchases of Brazilian crude increased 49% to US$21.8 billion. Shipments rose 27% by volume, while prices increased 16.8%. China bought half of all the crude Brazil exported, nearly seven times India’s share. The report linked this change directly to the search for more stable suppliers.

The shift happened even though China’s total crude imports fell 32% in the second quarter. Gulf exports excluding Iran later recovered to more than 81% of pre-war levels in September, after a US-Iran agreement in June. That recovery may reduce Brazil’s exceptional advantage, although tanker attacks intensified this month.

The Strait of Hormuz is a narrow maritime passage used by ships moving between the Gulf and wider international waters. It is important because major oil-producing countries in the Gulf depend on this route to reach customers. Any closure, attack, or serious threat can delay shipments and unsettle buyers.

The article reports that the route carried more than half of China’s seaborne crude-oil imports. Tehran effectively closed it after US and Israeli strikes on Iran began in late February. That disruption made Chinese buyers search for suppliers whose shipments did not depend on the threatened passage.

Brazil benefited from this concern. Its crude sales to China reached US$21.8 billion, while shipments increased 27% by volume. Gulf exports excluding Iran later recovered to more than 81% of pre-war levels in September, but Iranian attacks on tankers intensified this month. The route therefore remained a major factor in supply decisions.

China’s Brazilian crude purchases reached US$21.8 billion between January and September. This was a 49% increase from a year earlier and marked a record for the trade. The figure measures the value of the oil sold, rather than giving a separate physical quantity for China’s purchases.

China took half of all crude Brazil exported during the period. Brazil’s crude exports to every market rose 28.7% to US$43 billion. China’s share therefore made it the dominant destination, while India, the next-largest buyer, received a share nearly seven times smaller than China’s share of Brazilian crude exports.

The concentration reflected concerns about Gulf supply disruptions and the Strait of Hormuz. Brazil’s shipments to China rose 27% by volume, while oil prices climbed 16.8%. The July figures had shown an even larger 54% share for China, suggesting that the shift had begun to lose momentum by the nine-month update.

The disruption changed China’s supplier choices by making shipment security more important. When the Strait of Hormuz was threatened, Chinese buyers looked for oil from countries whose exports were less exposed to the affected Gulf route. Brazil became especially useful because it is a major crude exporter.

Brazilian crude sales to China rose 49% to US$21.8 billion. Shipments increased 27% by volume, and China took half of all Brazil’s exported crude. This happened even as China’s overall crude imports fell 32% in the second quarter. China was therefore not simply buying more oil overall; it was changing where some purchases came from.

The shift may not last at its peak. Gulf oil exports excluding Iran recovered to more than 81% of pre-war levels in September after a June US-Iran agreement. Still, intensified Iranian attacks on tankers this month show why supply-route risk continued influencing China’s choices.

Falling total imports do not mean every supplier loses equally. China’s crude imports fell 32% in the second quarter, but conflict made some origins and routes riskier than others. Buyers could reduce overall purchases while redirecting a larger portion toward a dependable alternative such as Brazil.

The trade data show this clearly. Brazilian crude sales to China jumped 49% to US$21.8 billion, with shipment volume up 27%. China took half of Brazil’s exported crude. The report connected this increase to the search for stable suppliers after threats to Gulf flows and the Strait of Hormuz.

Brazil’s advantage could weaken as disrupted supplies recover. Gulf exports excluding Iran rose above 81% of pre-war levels in September after a US-Iran agreement in June. However, Iranian attacks on tankers intensified this month, so route security remained relevant. Brazil’s position depended on both its export capacity and continuing uncertainty around Gulf shipments.

The oil boom changed the composition of Brazil’s exports to China. Crude oil increased in importance, while soybeans remained the largest category. This matters because Brazil’s trade relationship with China was not driven by one product alone, but oil’s rapid growth gave it a much larger role.

Oil accounted for 25.8% of Brazilian exports to China, up 6.3 percentage points from a year earlier. Soybeans represented 35.4%. Rio de Janeiro became the largest exporting state to China because it supplied 89% of the crude sold to the Chinese market. Beef moved in the opposite direction, falling 8.5% to US$5.5 billion.

Other products added new opportunities. Sorghum sales reached US$170 million, and spodumene exports rose 339% to US$172.3 million. Electrified cars also drove Chinese imports into Brazil. The trade mix therefore became more energy-heavy on exports while also broadening through farm goods, minerals, and vehicles.

Crude-oil exports are sales of unrefined petroleum to buyers in other countries. Their value depends mainly on how much oil is shipped and the price received. More barrels can increase earnings, while higher prices can raise the export value even without larger shipments.

Brazil’s figures show both effects. Sales of crude to China rose 49% to US$21.8 billion. Shipment volume increased 27%, and prices climbed 16.8%. Brazil’s crude exports to all markets grew 28.7% to US$43 billion. These gains helped produce a US$26.1 billion surplus with China.

That surplus equalled 42% of Brazil’s trade surplus with the world. In simple terms, Brazil sold much more to China than it bought, with oil providing most of the export gain. The result shows why commodity prices and shipment volumes matter: they can quickly change trade earnings, the balance between exports and imports, and the importance of one trading partner.