Pistachio prices have reached their highest level in eight years as exports from one of the world’s largest producers, Iran, are being choked by the war in the region.
Prices rose to around $4.57 a pound in March, their highest since 2018, according to data company Expana.
Traders told the Financial Times in an article published Sunday that pistachios from Iran are becoming increasingly difficult to source due to the US-Israeli war on the country that has upended logistics and supply chains across the Middle East.
Why it matters: The global pistachio market is valued at around $5.49 billion, and it is expected to rise to $7.2 billion in the next five years, according to Mordor Intelligence. Iran is a cornerstone of this market, producing roughly one-fifth of global supply and accounting for 25% to 30% of exports, according to the US Department of Agriculture.
The current spike reflects a market that was already tightening before the war. Pistachio prices rose by almost a third last year due to growing demand and falling supply. Harvests among major producers — including Iran, the United States and Turkey — fell below expectations in 2025 due to drought.
Iran’s exports were already constrained last year by domestic unrest, sanctions and the 12-day war with Israel and the United States in June. More recently, the US-Israel-Iran conflict has further disrupted trade and the broader business environment, particularly through the closure of the Strait of Hormuz.
Since the current US-Israel-Iran conflict began on Feb. 28, Iran has choked off traffic through the Strait of Hormuz, a vital trade artery for many Middle Eastern countries. After that, Iran gained near-total control over which ships passed through the strait. Since April 13, however, the US has imposed a blockade on Iranian ports, stunting trade and forcing Tehran to find alternative routes.
Maritime traffic through the Strait of Hormuz remains at a near standstill. Even though the fighting has mainly stopped under a fragile ceasefire announced on April 8, ships are still being attacked in the waterway by Iran’s Islamic Revolutionary Guard Corps.
Know more: A surge in pistachio-flavored products has also contributed to rising demand, particularly since December 2023 when Dubai Chocolate — candy bars filled with pistachio cream and knafeh-shredded pastry — went viral on TikTok and other social media. The trend, which originated with boutique chocolatiers in the Gulf, has since spread globally, with major confectionery brands and retailers introducing pistachio-based products ranging from chocolates and desserts to beverages.
For example, at Dubai airports alone, some 2.5 million Dubai Chocolate bars were sold in the first six months of last year, generating around 165 million dirhams ($45 million) in revenue, Dubai Duty Free CEO Ramesh Cidambi told Dubai Eye in July 2025.