China’s loss of Persian Gulf oil due to the Strait of Hormuz crisis turned out to be Brazil’s gain, as the trade volume between Brazil and China hit a record $142 billion by September 2026, fueled by soaring exports of Brazilian oil.

According to data from the Brazil-China Business Council, Brazil is running a $26.1 billion trade surplus with China, supported by a record $21.8 billion in oil sales, a 49-percent increase over the previous year. 

Brazil’s largest export to China remains soybeans, but oil is catching up. Soybeans currently comprise 35.4 percent of Brazil’s exports to China, while oil has grown to 25.8 percent. Brazilian beef, on the other hand, slid by 8.5 percent due to Chinese caps and punitive tariffs on beef imports, designed to protect China’s domestic suppliers.

Brazil’s President Luiz Inácio Lula da Silva speaks during the 81st session of the United Nations General Assembly at United Nations headquarters, Tuesday, September 22, 2026. (AP Photo/Yuki Iwamura)

China is now buying half of Brazil’s oil exports, far ahead of second-biggest customer India. China is buying over a million barrels of Brazilian crude a day, sometimes surging to over 1.6 million, while India takes about 238,000 barrels per day (bpd).

Brazil’s sales to India are up too, growing by 165 percent so far this year, as part of an overall 28.7 percent increase in Brazilian oil exports to all buyers.

The growth in Brazilian oil exports seems to be tapering off, as oil exports from the Persian Gulf recovered over the past few months, and traffic through the Strait of Hormuz increased. It remains to be seen if renewed Iranian attacks on commercial shipping in the strait will swing China’s oil interest back to Brazil as a dominant supplier.

Industry analysts noted early in Brazil’s oil surge that the country lacks the production and export capacity to completely make up for the lost product from Persian Gulf heavyweights, but the boost in oil sales was a shot in the arm for Brazil’s economy, much needed after China’s tariffs on beef kicked in.

Luckily for Brazil, its oil is compatible with Asian refineries looking to avoid supply chain risks from the Iran conflict. Japan and South Korea have also expressed interest in buying more Brazilian crude, and the Brazilian government has actively pursued them as customers. 

Meanwhile, production is down among Brazil’s regional competitors, including Colombia, Ecuador, and Peru.