Silver Stagnates as Iran Deadline Nears

Silver plunged over 3% to $70 per ounce on Tuesday, its lowest in more than a week, as escalating Iran-US tensions failed to trigger safe-haven demand. President Trump issued a stark warning, declaring Iran’s "whole civilization will die" unless its regime meets US demands by 8:00 pm ET, including reopening the Strait of Hormuz and agreeing to a ceasefire. Meanwhile, Tehran reported attacks on Kharg Island, a vital oil hub, and the Yahya Abad railway bridge, while warning of strikes "beyond the region" if the US oversteps its boundaries. Despite the turmoil, silver remains 25% below pre-war levels, weighed down by a stronger US dollar and fading expectations of Federal Reserve rate cuts. With traders betting against easing, the metal’s safe-haven allure has dimmed, leaving prices suppressed amid the crisis.

Silver hovered around $72 per ounce on Tuesday, oscillating between modest gains and losses as traders adopted a "wait-and-see" approach ahead of President Trump’s Iran deadline. The ultimatum, which demands Iran reopen the Strait of Hormuz and agree to a ceasefire or face military action, has done little to ease tensions, with hostilities intensifying: Tehran reported attacks on Kharg Island, a vital oil hub, and the Yahya Abad railway bridge, while warning of strikes "beyond the region" if the US oversteps its boundaries. Yet, despite the escalating conflict, silver remains 20% below pre-war levels, pressured by a stronger US dollar and shifting Fed expectations. With traders betting against rate cuts, the precious metal’s safe-haven appeal has weakened, leaving prices subdued amid the geopolitical storm.

Silver held steady at $72.7 per ounce on Tuesday, with markets in a "wait-and-see" mode ahead of Trump’s deadline for Iran. The US president has warned that Iran must reopen the Strait of Hormuz and agree to a ceasefire, or risk military action, threatening massive strikes on Iranian infrastructure. Despite the escalating tensions, silver has plunged over 20% since the conflict began, pressured by soaring energy prices that have intensified inflation concerns. This has led central banks to reconsider monetary easing, with the Federal Reserve now expected to hold rates steady, a shift from pre-war expectations of cuts. Meanwhile, markets are pricing in two Bank of England hikes this year and three from the European Central Bank, further dampening silver’s appeal as a safe-haven asset.