War in Iran has sent pistachio prices to multi-year highs by crippling global supply while demand surges. Conflict disrupts shipping and complicates exports from one of the largest producers. Sanctions and infrastructure damage compound logistical hurdles, forcing buyers to seek alternatives as the conflict intensifies trade fragmentation across the Middle East.

Borna Foods reports sharply increased nut costs as the Strait of Hormuz remains contested. The company imports from California, Spain, Turkey, and Iran, supplying UK food manufacturers facing £18.50 per kilo import prices. Persistent communications shutdowns in Iran prevent coordination, worsening an already constrained market amid surging interest in Dubai chocolate and pistachio-flavored products.

Traders note pistachio costs reaching $4.57 per pound, the highest level since 2018. Buyers pivot to US supply, but that origin lacks the oil content preferred for taste, particularly for baklava producers. This shift is feeding through to spot markets globally. Iranian producers claim they will eventually re-enter the market, though current logistics bottlenecks continue to elevate costs for consumers.