War in Iran tightens the pistachio market
The military escalation in Iran, intensified by the country’s severe internal political crisis and an internet blackout that has lasted since January 8, has turned pistachios into a silent indicator of tensions in the Middle East.
Iran remains one of the world’s major pistachio producers, alongside the United States and Turkey. However, its leadership in the sector had already been under pressure before the conflict due to a difficult combination of drought, heatwaves and energy shortages that have reduced agricultural yields.
For the 2025/26 season, global pistachio production is expected to decline by around 8%, with particularly significant drops in Iran and Turkey.
The war has added a new layer of disruption: logistics.
The Strait of Hormuz is the main artery through which a large share of Iranian pistachios leave the country, while the port of Shahid Rajaei handles roughly 85% of Iran’s container traffic. The explosion that occurred there in April 2025 abruptly disrupted export plans for approximately 120,000 tons of pistachios, forcing ships to reroute, contracts to be renegotiated and exporters to absorb immediate additional costs.
Containers stuck, prices rising
When a country that supplies a large share of the global market becomes “stuck” at port, the effects are felt quickly across major importing regions.
India, which depends on Iran for nearly 70% of its pistachio consumption, saw prices surge by almost 26% in just one week following the outbreak of hostilities.
Traders and wholesalers report additional increases of up to 100 rupees per kilogram across imported nuts, with pistachios among the products most affected.
The conflict has shifted the focus of the problem from the orchard to logistics.
Shipping risks in the Gulf and the Strait of Hormuz have pushed freight costs higher, increased insurance premiums and extended delivery times. At the same time, U.S. sanctions — including tariffs of up to 300% on Iranian pistachios — force exporters to rely on indirect routes through third countries.
Within this logistical maze, shipments face more inspections, more paperwork and customs delays of seven to ten days, adding further pressure to wholesale prices.
Demand is booming
For 2026, Iran expects to produce 225,000 tons of in-shell dried pistachios, around 6% less than in 2024. However, managing the supply chain has become increasingly chaotic due to the political crisis and the nationwide internet blackout.
This instability comes precisely at a time when Spanish pistachio production is beginning to expand significantly, turning Spain into much more than a temporary substitute.
Only about one third of Spain’s more than 70,000 hectares of pistachio orchards are currently in full production, and pistachio trees typically reach their peak yields around 12 years of age. As a result, industry forecasts suggest that Spanish production could multiply several times within the next five to eight years.
The so-called “new green gold rush” is not limited to planting trees. Millions of euros are being invested in processing plants capable of handling several million kilograms of pistachios annually.
The industry is also moving toward higher value-added products, ranging from pistachio creams and pastes for pastry and ice cream to spreads designed for retail consumers.
This means Spain is not only aiming to sell raw pistachios, but also to capture a larger share of the value chain at a time when the war in Iran and ongoing sanctions are creating supply gaps for high-quality pistachios within the European food industry.
A strong domestic market and a gap in Europe
Pistachios are no longer a niche product on Spanish supermarket shelves.
Ice cream, spreads, pastries, chocolates and snacks containing pistachios are becoming increasingly visible in retail and foodservice, reflecting a clear rise in domestic consumption.
At the European level, the gap left by instability in Iran is becoming increasingly noticeable.
Importers and distributors are starting to value Spanish pistachios more highly compared to Iranian or even American origins — not only due to geographic proximity, but also because of traceability, food safety standards and reduced exposure to geopolitical shocks.
In markets such as Italy, which imports around 88% of the pistachios it consumes, the origin of the product is being examined more carefully than ever, opening opportunities for well-positioned European producers.
A strategic opportunity for Spanish pistachios
It is essential to take advantage of this moment to position Spanish pistachios as a strategic solution to the growing demand in the global market.
In this context, Víridi Horizons aims to establish itself as a key partner capable of guaranteeing both present and future supply of pistachios and pistachio paste.
As a fully integrated operator across the entire value chain — from cultivation to processing and commercialization — Víridi Horizons offers traceability, supply stability and a reliable, sustainable proposition for the food industry.
In an increasingly volatile global market, those qualities are becoming just as important as the product itself.