Silver fell more than 2% to around $82.40 per ounce on Monday morning, pressured by a stronger US dollar and diminishing expectations for Federal Reserve rate cuts, which outweighed safe-haven demand stemming from the escalating conflict in the Middle East. Oil prices climbed above $100 per barrel for the first time since 2022 as the war with Iran entered its second week, heightening fears of a renewed wave of global inflation.
Market disruptions deepened after oil tankers were effectively prevented from transiting the Strait of Hormuz, prompting several Middle Eastern producers to reduce crude output. The conflict has already halted roughly one-fifth of global crude and natural gas supply, with Iran targeting vessels along this critical shipping corridor. The surge in energy prices threatens to complicate the Fed’s policy outlook, reinforcing expectations that interest rate cuts could be postponed.
Silver also came under additional pressure from concerns that higher energy costs may slow global economic growth and weaken industrial activity, undermining a key source of demand for the metal.
