Silver Surges 5% as US-Iran Ceasefire Cools Inflation Worries

Silver prices soared over 5% to $76.70 per ounce on Wednesday, reaching their highest level since March 18, after the US and Iran agreed to a two-week ceasefire. The deal, which includes a 10-point negotiation framework and the reopening of the Strait of Hormuz, eased concerns over energy-driven inflation and led investors to adjust their 2026 interest rate outlook. The Federal Reserve is expected to keep borrowing costs unchanged this year, reversing earlier fears of a potential rate hike. While precious metals like silver typically serve as a hedge against inflation and uncertainty, their appeal weakens in a high-interest-rate environment due to their lack of yield. Since the Iran conflict began on February 28, silver has fallen by 18%.

Silver jumped more than 4% to above $76 per ounce on Wednesday, hitting a three-week high after President Donald Trump delayed his planned strikes on Iranian civilian infrastructure by two weeks to finalize talks on a potential resolution to the war. Trump also said the US had received a 10-point proposal from Iran that he described as a “workable basis for negotiations,” with the two-week window allowing the potential agreement to be finalized and implemented. Additionally, Iran has agreed to reopen the Strait of Hormuz for two weeks provided all attacks are halted, adding that transit would need to be coordinated with Iran’s Armed Forces, while Israel has also reportedly assented to the temporary ceasefire. Silver has tumbled as much as 37% peak-to-trough since the conflict began, as a surge in energy prices fueled inflation concerns and reinforced a hawkish shift in central bank outlooks.

Silver increased 5.01% to 76.354 USD/t.oz