IBP Statement - Conflict in the Middle East
The Brazilian Petroleum, Gas and Biofuels Institute (IBP) warns that the escalation of the conflict in the Middle East could have significant impacts on the oil and gas market, particularly in the event of a closure of the Strait of Hormuz, through which approximately 25% of the world’s seaborne oil exports pass each day, in addition to substantial volumes of natural gas from countries such as Saudi Arabia, the United Arab Emirates, Qatar, and Oman. One likely consequence would be a shift in global oil and natural gas price levels.
Potential blockades or attacks on critical infrastructure in the region could cause severe disruptions, primarily affecting the energy supply of major Asian economies such as China, India, and Japan. Reduced competitiveness in these economies, coupled with upward pressure on oil and natural gas prices, would be among the direct consequences should hostilities persist.
In this context, Brazil stands out as a safe and reliable supplier operating within a stable business environment. The country also offers high-quality crude oil characterized by low sulfur content and a low carbon footprint. IBP notes that Brazil has been steadily increasing its production, is currently the world’s ninth-largest oil exporter, and already directs 67% of its crude oil exports to Asian markets.
Given the current geopolitical instability, IBP also emphasizes the importance of maintaining consistent investments in exploration and production activities aimed at developing new frontier areas—such as the Equatorial Margin—to ensure long-term energy security, expand export capacity, and prevent Brazil from returning to the status of a net oil importer in the next decade.
