Silver Drops Over 2%

Silver fell more than 2% to $58.4 an ounce on Wednesday, returning to levels not seen since December 2025, after US President Donald Trump declared an interim peace deal with Iran "over." The announcement sent oil prices up over 5% and heightened concerns about inflation and higher US interest rates. At NATO’s Ankara summit, Trump confirmed the June memorandum of understanding with Iran was finished and ruled out further engagement with Tehran. The oil price surge followed Iran’s Revolutionary Guards’ statement that they had targeted US military bases in Bahrain and Kuwait in response to US strikes on Iran and the revocation of its oil sales license. Markets now price in a 66% chance of a US rate hike in September, up from 62% on Tuesday. Investors are awaiting the Federal Reserve’s June meeting minutes, due later today, for further monetary policy clues.

Silver rose above $60 an ounce on Wednesday, paring losses from the previous session even as the US military launched fresh air strikes on Iran following recent attacks on ships transiting the Strait of Hormuz. The renewed escalation threatened the interim US-Iran peace deal and drove oil prices higher, stoking inflation fears and raising prospects for interest rate hikes. The US also revoked a waiver allowing Iran to sell crude on global markets, while the latest hostilities discouraged shipowners and regional producers from using Hormuz, raising the risk of renewed disruptions to global energy supplies. Meanwhile, investors awaited the minutes of the Federal Reserve’s June meeting for further clues on the policy outlook. Silver had recently rebounded after softer-than-expected US jobs data prompted markets to scale back expectations for near-term Fed rate increases, though the renewed Middle East tensions kept the outlook uncertain.

Silver declined to $61.2 per ounce on Tuesday as investors assessed rising Middle East hostilities and awaited the Federal Reserve’s June meeting minutes for monetary policy signals. The metal had reached a two-week high on Monday following a softer-than-expected US jobs report, which prompted markets to reduce expectations for near-term interest rate hikes. However, persistent inflation concerns suggest the Fed may maintain a "higher for longer" approach, with traders pricing in a 60% chance of a September rate hike. Meanwhile, oil prices edged higher after two tankers were struck in the Strait of Hormuz, and Iran stated it would halt peace talks unless US President Trump ceased his repeated threats to restart the war.