Iran War Sparks Saffron Price Shock

London businesses are experiencing a significant surge in saffron prices, with costs escalating from approximately £1,200 to over £2,100 per kilo. This sharp increase is directly linked to the ongoing conflict in Iran and the resultant blockade of the Strait of Hormuz, a critical global shipping route.

Iran is the world's primary producer of saffron, accounting for 90% of global supply. The current instability has led to dwindling availability of not only saffron but also other key ingredients like chickpeas and zereshk, commonly used in Iranian and Middle Eastern cuisine.

Moein Tiyari, a UK-based saffron supplier, highlighted the logistical challenges, including a lack of flights and internet shutdowns in Iran, which have made it nearly impossible to source and export saffron in bulk. This scarcity is forcing traders to seek alternative suppliers, often with limited quantities available.

Restaurant owner Dilman Mahmoud of Sadaf in west London is striving to maintain current prices for his customers despite these pressures. He noted that 85% of his restaurant's dishes, including marinades and desserts, depend on the unique quality of Iranian saffron, for which there is no acceptable substitute.

The conflict also impacts other food items, with chickpea prices rising from £33 to £46 per box and zereshk increasing from £9.50 to £13 per kilo. These escalating costs pose a significant challenge for restaurateurs aiming to preserve their traditional offerings and customer pricing.