Key Points
—Brazilian exports to the 15-country Middle East region fell 26% in March to US$882 million, down from US$1.2 billion a year earlier, as the US–Israel–Iran war disrupted Gulf shipping routes.
—Agribusiness took the main hit, with pork exports down 59%, soy down 25% and chicken — Brazil’s top item sold to the region — falling around 22%, according to the Ministry of Development, Industry, Trade and Services.
—The government is diversifying fast, with Vietnam and Singapore absorbing part of the shortfall, while a transit deal signed with Turkey in late March is meant to keep shipments flowing to the Gulf via alternative routes.
Brazil’s Middle East exports just lost a quarter of their value in a single month as the Gulf war chokes off shipping corridors Brazilian agribusiness has relied on for two decades.
The Rio Times, the Latin American financial news outlet, reports that the first month of the US–Israel–Iran conflict cost Brazil Middle East exports US$318 million in lost revenue, pulling the total for the region down to US$882 million in March from US$1.2 billion a year earlier. The figures come from the Ministry of Development, Industry, Trade and Services and represent a 26% year-on-year drop across the 15 countries Brasília classifies as Middle Eastern trading partners.
The scale of the decline is a structural signal rather than a rounding error. For comparison, the Middle East accounts for roughly 4% of total Brazilian exports in a normal year, and the region’s appetite for Brazilian protein and soy has been expanding steadily since the Ukraine war reshuffled global grain flows in 2022.
Brazil Middle East exports: the product breakdown
The March damage is concentrated almost entirely in agribusiness, the pillar of the commercial relationship with the Gulf. Pork exports to the region fell 59%, the steepest decline among the top categories. Soy shipments dropped 25%, a significant move given that March typically sees peak harvest-season volume heading east.
Chicken, Brazil’s single most important export item to the Middle East, fell about 22%. Saudi Arabia, the United Arab Emirates and Egypt between them absorb the bulk of Brazilian halal poultry, and any sustained disruption to that trade corridor forces JBS, BRF and other processors to reroute product to Asian buyers at lower margins. Sugar, coffee and corn are also exposed, though March data on those categories remains preliminary.
Herlon Brandão, the ministry’s director of statistics, cautioned that one month is not yet sufficient evidence to pin the full decline on the war. More time is needed, he said, before the conflict can be formally identified as the driver. Traders working the routes, however, describe a sharper and more immediate reality.
Why the Hormuz shock hits Brazilian agribusiness first
The Middle East sits at the far end of a shipping corridor that runs through either the Strait of Hormuz or the Red Sea, both of which have seen direct kinetic disruption this year. Cristiane Mancini, a specialist in international economics at Brazil’s ESPM business school, told CNN Agro News that the conflict had raised freight costs, lengthened voyage times and injected commercial uncertainty of the kind that makes buyers hesitate.
The “significant impact” she described is visible in the insurance market, where war-risk premia on vessels transiting Hormuz have more than doubled since the ceasefire collapsed in March. Larger exporters with long-term contracts can absorb part of that cost, but smaller operators effectively get priced out of the route.
The broader Hormuz dynamic also runs through Brazilian imports. Middle East fertilizer supply — concentrated in Saudi Arabia, Qatar and Oman — meets roughly 8% of Brazilian demand, and trade data from S&P Global’s Panjiva unit shows Yara and Mosaic carry disproportionate Gulf exposure in their Brazilian operations.
The diversification response: Turkey, Vietnam, Singapore
Brasília has moved to contain the damage on two fronts. At the end of March, the government signed a transit and temporary-storage deal with Turkey that allows Brazilian agribusiness cargoes bound for the Middle East and Central Asia to stage through Turkish ports, reducing direct Gulf exposure.
On the demand-diversification side, Asian buyers are absorbing volume that would otherwise go west. Vietnam and Singapore have both picked up Brazilian agribusiness product in recent months, part of a broader shift that now sees Brazil selling to 548 export destinations, according to ministry data.
China remains the dominant Asian destination and has continued to grow its intake of Brazilian soy, beef and oil throughout the quarter. That strength is a large part of why the overall first-quarter Brazilian trade surplus hit a record US$14.2 billion even as the Middle East corridor was breaking down, which is also why headline trade-balance optimism needs to be read alongside the Gulf-specific deterioration.
What the Middle East exports data means for the Q1 trade thesis
The March Middle East print sits awkwardly next to the bullish Q1 surplus narrative. Record quarterly numbers were built on oil exports, which rose as Brazilian crude picked up Asian demand displaced from Iranian supply. Agribusiness, the country’s second structural pillar, was quietly absorbing a demand shock in the opposite direction during the same period.
That asymmetry is exactly what economists at FGV/IBRE and the Brazilian Foreign Trade Association flagged when the Q1 data landed. The surplus is real, but the composition is narrower than it looks, and a sustained Gulf war would test whether the Asian diversification can continue to compensate for Middle East weakness at current price levels.
April data, due in early May, will be the first month to include a full Iran ceasefire extension period. The base case in the market is a partial recovery in Middle East volume if shipping calms, but Brazilian agribusiness has now been put on notice that a single geopolitical event can erase a quarter of regional demand in thirty days.
Related coverage: Brazil Q1 trade surplus hits US$14.2 billion record • 12 Brazilian-bound ships caught in Gulf war • Oil prices spike as Iran ceasefire collapses