Not just oil, gas and fertilizers: the war in the Middle East also drove up the global price of pistachios

Besides Israel, the conflict pits the US against Iran, the source of 83% of global production, whose trade also passes through the Strait of Hormuz. In Argentina, it has become fashionable in recent years due to culinary creations and its properties as a functional food.
February 26th was World Pistachio Day. Two days later, on the 28th, the war in the Middle East began, pitting Israel against the world's two main producers of this nut, which has become fashionable in recent years.
The United States is the world's leading producer, with nearly 713,000 tons produced (mainly in California) in the 2025/26 marketing year, a staggering 65% of global production. Iran is second, with approximately 200,000 tons, or 13% of the total. In other words, two of the three main players in the conflict account for 83% of global production, and a country near the conflict zone, Turkey, produces another 11%, bringing the total to 94%.
Even more serious, the bulk of world trade is carried out through the Strait of Hormuz, so the war caused the biggest increase in the price of pistachios in the last eight years, both because of the disruption of supplies and because of strong demand, driven by the boom in products such as Dubai chocolate and other pistachio-based foods.
In fact, Iran's share of world trade, close to 30%, is even greater than its share of production, while the US consumes much of what it produces.
The price of pistachios, according to a Financial Times article, reached its highest level since 2018 in March, at $4.57 per pound, or just over $10 per kilogram. Furthermore, the 2025 harvest was lower than expected in major producing countries, including Iran, which was affected by drought. In addition, Iranian exports were already limited by sanctions and internal conflicts, and in recent weeks internet outages have further complicated coordination with international buyers.
The pistachio price chart from FRED (Federal Reserve Economic Data), the tracking system maintained by the US Federal Reserve, is conclusive on this point. After a long period of stability, almost a horizontal line, prices skyrocketed with the outbreak of the war. International buyers are seeking alternative sources of supply, but US exporters have already sold most of their stock, meaning that if the conflict persists, prices will continue to climb.
In Argentina, pistachio cultivation has emerged in recent years as a product geared towards growing global demand. The gap between supply and demand has caused prices to double in several markets and has generated interest from new producers who could supply markets experiencing shortages. “Pistachios are not a fad; they have been growing for twenty years at 6.5% annually. The supply faces a very high barrier to entry, mainly due to agroclimatic factors, and is capital-intensive at the outset. This causes the gap between demand and production to widen year after year, and a structural deficit of 250,000 tons is estimated for 2040,” Juan Ignacio Ponelli , owner of Agrofides , told Infobae on World Fruit Day.

In the country, the model adopted in several projects combines the planting of hectares, infrastructure and professional administration by rural trusts, with costs per hectare of about $72,000 including initial investment and annual expenses.
The return on investment isn't immediate, as the crops only begin to bear fruit from the seventh year onwards. However, once they reach that point, they are very resilient, remaining productive for almost 50 years, although not consistently. This largely depends on climatic conditions.

The pistachio boom in Argentina encompassed gastronomy: ice cream parlors, chocolate shops and pastry shops adopted it as an ingredient in sweet and savory preparations: the fruit ceased to be exclusive to gourmet niches.
Furthermore, it has good nutritional properties: high protein content, healthy fats and minerals, which reinforced its position as a "functional product", beyond its taste and texture.

Where is it produced in Argentina?
In Argentina, the area planted with pistachios has increased significantly in recent years. San Juan leads with approximately 6,500 hectares, representing almost 90% of the national area and production, followed by Mendoza with around 770 hectares. La Rioja and La Pampa have scattered areas dedicated to the crop.

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