Silver Slides Toward Eight-Month Low as Trump’s Iran Remarks

Silver extended its losses to around $57.7 an ounce on Wednesday, falling to levels not seen since December 2025 after US President Donald Trump declared the interim peace agreement with Iran "over." His comments drove oil prices more than 5% higher, heightening concerns that rising energy costs could fuel inflation and keep US interest rates higher for longer. Speaking at NATO's summit in Ankara, Trump said he had no interest in further engagement with Iran and warned that Washington would likely launch additional strikes later on Wednesday. His remarks marked another abrupt turn in a conflict where rhetoric from both the US and Iran has repeatedly shifted between military escalation and diplomatic efforts. Markets are now pricing in at least one Federal Reserve interest rate hike by the end of 2026, reducing the appeal of non-yielding assets such as silver.

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.