The war in Iran has sent pistachio prices surging to the highest level in years due to supply chain disruptions in the Strait of Hormuz.

Disrupted shipping routes caused by the conflict has complicated exports from Iran, one of the world’s largest pistachio producers, and put strain on an already tight market.

Pistachio prices rose to about $US10.05 ($AUD14.06) per kilo in March, the highest since 2018, according to Expana, a prominent agrifood Price Reporting Agency.

The global craze for Dubai chocolate – cocoa products infused with pistachio cream and shredded pastry – has fuelled demand since it went viral online in 2023, prompting a broader explosion in pistachio-flavoured products.

Iran produces about a fifth of the world’s pistachios and between 25 and 30 per cent of global exports in some years, according to the US Department of Agriculture.

“It’s like gambling – we don’t know at what price to sell,” London-based wholesaler Borna Foods’ chief executive Behnam Heydaripour told the Australian Financial Review (AFR).

Shipping lines have cancelled or rerouted services, delaying cargo and raising costs. Pistachio shipping to the Middle East, India, and other key markets has also faced disruption.

Supply of the green nut was already under strain before the Iran war, caused by poor harvests and drought across major producers, including the US, Turkey, and Iran in 2025.

“The war has amplified existing constraints rather than creating new ones from scratch,” Expana analyst Nick Moss told the AFR, adding that issues were “stacking on top of each other”.

The problems “are manageable for now,” Moss said, but are having “material impacts on timing and costs”.

Iran’s exports were previously constrained by sanctions and domestic unrest, and periodic communications shutdowns earlier this year complicated exporters’ abilities to co-ordinate sales with international buyers, slowing the flow of goods even before conflict began.

“It’s difficult to talk to the suppliers in Iran as their internet has been shut down. They can’t reply to emails,” Mr Heydaripour said.

“We are trying to replace Iranian pistachio with other origins, but there is a problem.”

“Iranian pistachios contain [a] high level of oil compared to other origins. That makes a lot of difference in the taste.”

The long-term viability of using alternative shipping routes to reach major markets from Iran, including through Turkey’s Mersin port and the Suez Canal, is currently being explored.