US nuts: demand disruptions

Dubai as trading hub for Middle East

Although US exporters do not directly ship nuts to Iran, the shipping crisis in the Gulf region is having quite an impact. Last week, the nut sector largely adopted a wait and see approach, the key issues being transportation and insurance costs, longer transit times and demand in the Middle East as a webinar hosted by Mintec/Expana highlighted.

The rise in oil and gasoline prices does not only have a direct impact on energy-rich sectors but will also have rippling effects on the entire global supply chain. Shipping has become more expensive with extortionate emergency surcharges applying overnight. On top of this, several leading shipping lines have suspended bookings and rerouted vessels around the Cape of Good Hope, which results in longer transit times. The market is also on edge over the attack on the oil tanker Skylight near Oman and the fire at Jebel Ali Port in Dubai.

As Bikram Hundal from Customs Almonds states in an interview on Fresh Plaza the port is an important trading hub for US nuts in the region. Shipments are transferred from here to neighbouring countries including Iran. Confusion and uncertainty reigned after debris from an aerial interception of an Iranian missile caused a fire in the port on 1 March. According to media reports the port is, however, fully operational. Yet some vessels have been redirected to African and Chinese ports. For US nuts the Middle East is a very important customer. As recent shipment reports show as much as 58% of shelled US walnuts, 26% of US almonds and 21% of pecans as well as 20% of US pistachios are exported to the Middle East and Africa.

Walnuts

As the California Walnut Board’s Monthly Shipment Report for January highlights more than half of US inshell walnut exports were destined to the Middle East/Africa this season. Total US in-shell exports amounted to 179 million pounds as of 31 January and kernel exports. In-shell exports to the Middle East and Africa have more than tripled this season prompting the region to become the most important region with Turkey (73 million pounds) as the main driver, followed by the United Arab Emirates (14 million pounds).

Although US kernel exports to the Middle Est and Africa have risen sharply by 68% this season as compared with the same period in 2024/2025, the region only accounts for 9% of the volumes shipped. Israel (5 million pounds), the United Arab Emirates (5 million pounds) and Jordan are the main export destinations here.

Almonds

According to the most recent Position Report issued by the Almond Board of California in January, total exports have reached 983 million pounds this season so far. The Asia Pacific is the main export region, followed by Europe and the Middle East/Africa. Shipments to the Middle East have grown in recent years and industry stakeholders persistently highlight that demand is on the rise in the region. At present the Middle East accounts for 21% (200 million pounds) of the total export volume with the United Arab Emirates (88 million pounds), Turkey (80 million pounds) and Saudi Arabia (11 million pounds) as key destinations.

Pecans

Total shelled pecan exports reached 12 million pounds in January as the Monthly Report issued by the American Pecan Council shows. The Middle East accounts for 21% of this volume with Israel (2 million pounds) as main buying country, followed by Saudi Arabia (378,000 pounds) and the United Arab Emirates (137,790 pounds).

Pistachios

Year-to-date exports for pistachios amounted to 467 million pounds according to the January position report issued by the Administrative Committee for Pistachios. The Middle East/Africa accounts for 20% of this volume. Turkey (29 million pounds), the United Arab Emirates (20 million pounds) and Saudi Arabia (29 million pounds) are the main export destinations in the region.

Oil price shock

A shipping crisis has unfolded since Iran closed the Strait of Hormuz on 28 February after the US and Israel attacked Tehran. Not only is around 20% of the global daily oil consumption shipped through this strait but leading Middle Eastern oil producers have cut production including Saudi Arabia, the United Arab Emirates, Kuwait and Iraq.

After WTI crude oil prices soared above USD 100 per barrel on Monday, the market turned again prompted by US President Donals Trump’s assurance that the war in Iran is nearly over and that he intends to waive oil-related sanctions and have the US Navy escort ships through the Strait of Hormuz according to Trading Economics and other news websites. In addition, the G7 finance ministers stated that oil reserves would be released if necessary.

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