Platinum futures slipped below $1,620 an ounce, hovering near their lowest levels since late November, as mounting tensions in the Middle East kept inflation risks in sharp focus. The United States launched multiple strikes against Iran this week and reimposed a blockade on the Strait of Hormuz, prompting Tehran to retaliate with attacks on US bases in neighboring countries.
The renewed conflict drove oil prices sharply higher, reinforcing expectations that ongoing disruptions to energy supplies could fuel inflationary pressures. At the same time, softer-than-expected US consumer and producer price data led markets to scale back the probability of a near-term Federal Reserve rate hike, lending support to non-yielding assets such as platinum.
Additional backing for the platinum market comes from a constrained supply outlook. The World Platinum Investment Council continues to project a fourth consecutive market deficit in 2026, with demand forecast to exceed supply and above-ground inventories expected to remain near historically low levels.
