Iran becomes Brazil’s largest export market in the Gulf

The renewed exchange of attacks between the United States and Iran in the Persian Gulf and fresh uncertainty over commercial shipping through the Strait of Hormuz come as Brazilian exporters expand sales to the Iranian market.

In June, Iran was the largest buyer of Brazilian goods among eight Gulf-region markets: Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Iraq, Kuwait, Oman and Iran itself.

Brazilian exports to Iran rose from $129.9 million in June 2025 to $311.6 million in June 2026, an increase of 140%.

Sales also grew on a first-half basis, rising from $1.15 billion in the first six months of 2025 to $1.33 billion in the same period this year. Iran primarily imports soybeans, soybean meal, corn and poultry from Brazil.

According to Datamar data, soybeans were Brazil’s top export to Iran in the first five months of 2026, despite a 16% decline. The chart below compares the volumes recorded in the same period in recent years:

Soybean Exports to Iran | Jan-May | 2023 – 2026 | WTMT

Source: DataLiner (click here to request a demo)

June’s result was the strongest for the month since 2022, while first-half sales were the highest since the first six months of 2024.

With a population of more than 90 million, Iran has long been an important market for Brazilian products. Historically, however, the United Arab Emirates and Saudi Arabia have been the region’s largest buyers of Brazilian goods.

Iran ranked as the leading Gulf destination for Brazilian exports in April 2026 and again in June. The question now is what will happen to trade flows as the regional conflict intensifies.

U.S. attacks on targets in Iran have increased in recent days, as have Iranian strikes against U.S.-linked targets in Gulf countries.

Iranian forces have also attacked vessels traveling through the Strait of Hormuz and said they would close the waterway again. The United States responded by saying it would protect commercial shipping. U.S. President Donald Trump briefly proposed charging a fee equivalent to 20% of cargo value for passage through the strait but later abandoned the plan.

The escalation raises a series of questions for cargo now being negotiated for delivery to Iran and other Gulf markets in September or October. Exporters do not yet know which ports will be operating safely, whether freight rates and marine insurance costs will rise further, or whether Brazilian food shipments for human consumption and animal feed will be allowed to move freely through the Strait of Hormuz during this new phase of the conflict.

Jean Carlos Budziak, head of market intelligence at Brazil’s National Association of Grain Exporters, known as Anec, noted that shipments of Brazil’s second corn crop traditionally begin in July. The resumption of hostilities between the United States and Iran at the start of the export season has added uncertainty to the outlook.

For now, exporters are waiting to see how the situation develops.

“My assumption is that these sales will still take place,” Budziak said, noting that Brazilian products linked to food and animal nutrition tend to remain less affected by geopolitical disputes.

Since the war began, shipments of some food products for human and animal consumption have remained broadly in line with volumes recorded during the same period last year.

One product, however, has registered a sharp increase in sales to Iran.

“What increased substantially between the first half of 2025 and the first half of 2026 was Brazilian soybean meal exports, which rose fivefold,” Budziak said.

Soybean meal is used as feed for cattle and poultry in Iran. One possible explanation for the increase is that a country at war, seeking to shorten production processes, may favor meal that has already been processed over soybeans and corn, which require additional processing.

As the United States and Iran leave the Gulf’s geopolitical outlook uncertain, companies exporting Brazilian goods to Iran and other regional markets are assessing how the conflict could affect the pace of business.

Budziak repeated a view widely shared among Brazilian agricultural exporters: “Even with the war, countries in the region will continue to need food.”

Source: Valor Econômico

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