Iran War’s Impact On Pistachio: Prices Rise To Eight-Year High

As the Middle East crisis deepens, its impact is now being felt far beyond oil tankers and gas pipelines. The first shock hit fuel markets. The second wave struck fertilisers and food production.

Now, the fallout has reached one of the world’s most popular nuts and premium food ingredients — pistachios. The Middle East situation is starting to affect the pistachio market. As a result, prices have risen to their highest level since May 2018.

Iran is the world’s second-largest pistachio producer. The nation plays a major role in global supply. Pistachio, as a nut, is consumed on its own and is also used in ice creams, chocolates and beverages.

Fragile Market Even Before The War

Even before the war began in February-end, Iran’s pistachio market was under pressure. Nick Moss, an analyst at Expana Markets, said that sanctions and geopolitical tensions made exports difficult.

A few other factors added to the pressure, including:

• A lower-than-expected crop in 2025
• Communication shutdowns in January 2026 due to a government crackdown

Viral Trend Fuels Surge In Global Demand

While pistachio supply is falling, demand continues to rise. A big reason for this is the popularity of pistachio-filled ‘Dubai chocolate bars,’ which went viral on TikTok and Instagram in late 2023. The trend increased consumption in Europe, the Middle East and Asia.

At the same time, major food brands have also expanded their pistachio products:

• Haagen-Dazs and Tache introduced pistachio-based ice cream and plant-based milk
• Starbucks has popularised pistachio-flavoured coffee

According to Expana, prices have risen by around 30% in the two years from the end of 2023. In March 2026, as the Iran war hit supplies, pistachio prices touched $4.57 a pound. This was their highest since May 2018.

Trade Bottlenecks Beyond Iran

The impact of the war is now being felt beyond Iran. The nation accounts for about one-fifth of the global pistachio production and around one-third of exports.

Gyana Ranjan Das, business head of the edible nuts and pulses division at US-based Crown Point Ltd., said that shipping lines cancelled new freight bookings to the Middle East from March 2. The war has also disrupted supply chains to importing markets such as India, which imports about $9 billion worth of edible nuts annually.

What Happens Next?

It’s not known yet if military strikes have damaged pistachio orchards located in northeastern Iran. But the supply chain disruptions are evident.

Experts say that if the war drags on:

• Flow of pistachios to global markets could reduce further
• Food manufacturers may be forced to raise prices, change recipes, or opt for cheaper nuts

For now, the market remains on edge, with both supply and pricing closely tied to how the war unfolds.

Disclaimer: This content is for educational purposes only and does not constitute investment advice, personal recommendations, or a solicitation to buy or sell financial instruments. All investments involve risk, including potential loss of capital. Investors should consult professional financial advisors and consider their personal circumstances before making any investment decision.