US, Brazil Ethanol Exports Surge as Hormuz Crisis Lifts Demand, With US Shipments Up 20%
Updated
Updated · Reuters · May 15
US, Brazil Ethanol Exports Surge as Hormuz Crisis Lifts Demand, With US Shipments Up 20%
3 articles · Updated · Reuters · May 15
U.S. ethanol exports reached 638 million gallons in the first quarter, up 20% from a year earlier, while Brazil's 2026/27 exports are projected to jump to 2.2 billion liters from 1 billion.
The increase is being driven by countries seeking more secure fuel supplies as the Strait of Hormuz crisis drags on, with buyers—especially in Asia—raising ethanol blending rates and turning to imports.
Industry officials say the demand could outlast any near-term Iran-U.S. deal because governments now want to cut reliance on Middle East energy sources, keeping energy security high on policy agendas.
That shift is already feeding back into production plans: Brazil expects record ethanol output of 41.4 billion liters this season, and the U.S. industry says 1 billion gallons of new capacity will come online within 12 to 18 months.
As ethanol production soars, will the global push for fuel security trigger an unavoidable food crisis?
Beyond the current crisis, are the U.S. and Brazil building a new energy cartel based on ethanol?
Is the massive investment in ethanol a brilliant energy security solution or a risky bet on old technology?
Global Ethanol Exports Hit Record Highs Amid 2026 Hormuz Crisis: US and Brazil Lead Energy Market Shift
Overview
In the first quarter of 2026, ethanol exports from the United States and Brazil surged to unprecedented levels, driven by strong global demand for cleaner and more affordable energy alternatives. This surge provided crucial support for producers in both countries and is reshaping the international ethanol market. The United States reached 1 billion gallons in exports for the 2025/2026 marketing year, on pace to break previous records, while Brazil also saw significant growth. As more countries seek cleaner fuels, ethanol’s global role is expanding, with international partners increasingly embracing American-made ethanol for its economic and environmental benefits.