Portugal’s trade deficit narrowed to €3.05 billion in July 2026, from €3.45 billion a year earlier. Exports increased 6.5% to €7.40 billion, driven by a 46.6% surge in fuels and lubricants, amid higher energy prices and renewed escalation in the US-Iran war. Exports also rose for industrial supplies (8.1%) and machinery and other capital goods (12.5%), while transport equipment fell 9.3%, mainly due to lower passenger-car sales. Exports to Spain rose 11%, while shipments to the UK and Netherlands fell 10.3% and 12.1%, respectively. Imports increased just 0.6%, led by a 42.7% rise in fuels and lubricants and a 10.2% increase in machinery and other capital goods. Imports of industrial supplies declined 14.2%, mainly due to chemicals. Imports rose from France (25.6%), Spain (4.3%), and Nigeria (584.8%), but plunged from Ireland (81.2%). For the first seven months of 2026, however, Portugal’s trade deficit widened to €21.35 billion, from €18.87 billion a year earlier.