US-Iran war drives pistachio prices to 8-year high

The ongoing conflict involving Iran is now spilling beyond energy markets into everyday food items, with global pistachio prices rising to their highest level in eight years due to supply disruptions and strong demand, Bloomberg reported.

The conflict has added fresh pressure to a trade that was already struggling because of sanctions and geopolitical tensions.

According to the report, benchmark pistachio prices rose to $4.57 per pound in March, the highest level since May 2018, and were already about 30% higher than at the end of 2023.

Iran is the world's second-largest producer of pistachios, and its crop plays a major role in global supply. The nut is widely used in snacks, desserts, ice creams and beverages, which makes any disruption in output or exports quickly visible in food markets.

Even before the latest conflict, Iran's pistachio trade had been under strain because of sanctions and earlier communication blackouts that affected export coordination, the report said.

Market analysts say the damage is not limited to the battlefield. A smaller-than-expected 2025 crop has already tightened availability, and the war has made the situation worse.

Nick Moss, a nut market analyst at Expana Markets, told Bloomberg that pistachios are especially sensitive to Middle East disruptions because the region is both a major producer and an important transit hub.

Demand has also been rising quickly. The report said pistachio consumption surged after pistachio-filled “Dubai chocolate” bars went viral in late 2023, boosting interest across Europe, the Middle East and Asia. Large brands including Häagen-Dazs and Starbucks have also expanded pistachio-based products, adding to demand at a time when supply is tight.