Khaberni - The American-Israeli war on Iran has driven pistachio prices to their highest levels in 8 years, after it augmented disruptions in a market that was already grappling with supply shortages, trade difficulties, and sanctions, at a time when global demand for this product used in snacks, ice cream, chocolate, and drinks is accelerating.
In March, the price of pistachios reached $4.57 per pound (453.6 grams), the highest since May 2018, according to data from "Expana" a company specializing in market tracking, with Iranian trade facing further pressure due to the war, shipping bottlenecks, and impacts on supply lines to major markets.
Iran is the second largest producer of pistachios in the world after the United States, with Iranian production accounting for about one-fifth of global production and about one-third of exports, according to data from the US Department of Agriculture, while the US holds first place with nearly 40% of production, and half of global exports.
Bloomberg reported that Nick Moss, a nuts market analyst at "Expana Markets," said the Iranian pistachio market was already suffering before the war, due to sanctions and geopolitical tensions, adding that the 2025 harvest was lower than expected, and there were communication disruptions in the country in January that constrained coordination of Iranian pistachio exports, and increased pressures on supplies.
Nick Moss added that the outbreak of war "exacerbated an already tense situation" and pushed the market into further contraction, with a reduction in quantities available and difficulties in getting them to global markets, noting that pistachios are a commodity sensitive to any disruption in the Middle East, as the region is a major producer, a transit center and an important consumption market simultaneously.
Accelerated Demand
The pressure on global pistachio supplies coincided with a strong demand wave starting in late 2023, which helped expand the use of pistachios beyond traditional consumption, as major brands have added it to products like ice cream and plant-based milk, and global cafes have expanded the presence of pistachio-flavored coffee, which supported a price rise by about 30% over the two years following the end of 2023, according to the American pistachio price benchmarks at "Expana."
Gianna Rangan Das, head of nuts and edible legumes business at "Crown Point" America stated that the war on Iran prompted shipping lines to cancel all new bookings to the Middle East starting from March 2, adding that the disturbance extended to supply chains linked to India, which imports edible nuts worth nearly $9 billion annually.
This indicates that the impact of the war is not limited to the buyers directly dependent on Iranian pistachio supplies, but extends to the entire global market through heightening competition for available stocks from other sources, which could push prices even higher if the war persists.
Costly Alternatives
Although it is still too early to assess whether the American and Israeli attacks have caused damage to Iranian pistachio orchards, shipping routes and logistics to trade hubs in the UAE and Turkey have suffered clear disruptions, according to nuts market analyst Nick Moss.
In this context, Amin Khurami, a researcher in international relations and former journalist, wrote in a post on platform X that satellite photos taken on March 28 showed destruction of pistachio warehouses near Rafsanjan airport in the Kerman province of southeastern Iran, which is considered the heart of the pistachio industry in the country, suggesting that this targeting was a direct economic strike.
Moss said that buyers are increasingly worried about the volume of pistachios that can actually reach global markets if the conflict continues, noting that even companies that normally do not rely on Iranian pistachios could find themselves facing tougher competition for supplies available elsewhere.
According to Bloomberg, this situation might reflect on consumers through higher prices for final products, or adjustments in recipes to reduce the use of pistachios, or switching to cheaper nuts, although completely replacing them remains more difficult when it is a main ingredient in the product.
Gianna Rangan Das, head of nuts and edible legumes business at "Crown Point," said that snack companies typically resort to replacing one type of nut with another depending on the prices, but pistachios are more complex than others when they are a key component, adding that this year's summer products, especially ice cream, might witness the absence of pistachio flavor or a reduction in its intensity, if the crisis continues and the supply further tightens.
