Platinum futures slipped to about $2,200 an ounce, pulling back from four-week highs as part of a broader decline in precious metals. The move came alongside a stronger US dollar, which has reasserted its traditional safe-haven status amid escalating tensions in the Middle East. The US military is expected to step up strikes on Iran, while a senior Iranian official has warned that vessels attempting to pass through the Strait of Hormuz could be targeted. Tanker traffic has largely ground to a halt as security risks rise.
The flare-up has sent oil prices sharply higher, stoking concerns over renewed inflationary pressures. In turn, this has triggered a sell-off in US Treasuries and scaled back expectations for additional Federal Reserve rate cuts. At the same time, platinum’s heavy dependence on industrial end-use—especially in automotive catalytic converters—leaves it more exposed to slowing global manufacturing activity and soft vehicle demand.
Even so, the platinum market remains structurally tight. Persistent supply constraints among major producers continue to underpin prices, limiting the extent of the recent pullback.
