Exports to the Middle East Tumble Amid Ongoing US-Iran War
By Ben Stanley
Last year, US exports of hardwood lumber to the Middle East and North Africa region (MENA) reached an all-time high. With 38.8 million board feet (MMBF) heading into area ports in 2025, the region continued to establish itself as a key emerging international market for the hardwood industry.
That outcome was severely shaken in late February, when the United States and Israel launched an aerial bombing campaign that decapitated much of Iran’s leadership and quickly led to the Iranian closure of the Strait of Hormuz.
Along with increased international energy prices, the ongoing conflict has hit overall trade into the MENA region hard. After a buoyant start to the year, US exports of hardwood lumber to the region fell sharply after the war began. From March through July, shipments were just 11.6 MMBF, down 32% from the 17.1 MMBF exported over the same period in 2025.
Looking at January through July, volume was down 20% year-to-date to 17.9 MMBF and on track to total 31.1 MMBF in 2026. If this figure holds, it will represent the smallest annual hardwood lumber export total to the MENA region since 2020.
The United Arab Emirates (UAE) has been among the worst affected of the MENA nations that import US hardwoods. This February, the US exported 1.3 MMBF of hardwood lumber to the UAE. In July, only 0.6 MMBF went to the country. Year-to-date exports to the UAE are down 42%. Turkey, Egypt, and Oman are the only nations in the region to which exports have increased in 2026, while shipments to Israel are essentially flat compared to last year.
For those hoping to export to the Middle East, the Dubai WoodShow and Saudi WoodShow are major industry events where significant business is historically done by the region’s buyers. While overall attendance was reportedly up at both the Dubai and Saudi Arabian events in 2026, held in late June and early September respectively, the American hardwood presence was understood to be lower at both compared to previous years.
In addition to the blow to exports, the other obvious impact of the ongoing conflict in the Persian Gulf has been the elevated cost of freight. US on-highway diesel fuel prices reached an all-time high of $5.56/gal on August 24, according to the US Energy Information Administration, up from $3.81/gal the week before the war began.
Contacts across all three Eastern hardwood producing regions regularly complain to HMR/Fastmarkets about the negative impact freight costs are having on their bottom line. “I can move everything, but this freight is killing me,” one Southern green sawmill operator said. “When will this war end?” Given that both the US and Iran have conducted missile attacks over the last week, and traffic through the Strait remains sporadic, the likelihood of that happening soon appears low.
News that Turkey was set to ban all Oak imports spread quickly through the hardwood industry in early August, appearing to add another considerable challenge to those who export to the MENA region.
After initial concern, reporting now shows that Oak exports will undergo stricter “plant-health” controls and border inspections. While these changes will likely slow exports into Turkey, the market will remain open for the time being. Since the beginning of the US-Iran War, Turkey has become the largest destination for American hardwood lumber in the MENA region.