Silver tumbled more than 3% to $70 per ounce on Tuesday, its lowest level in over a week, as escalating tensions between Iran and the United States failed to spark safe-haven buying. President Trump issued a stark ultimatum, warning that Iran’s "whole civilization will die" unless its regime complies with US demands by 8:00 p.m. ET, including reopening the Strait of Hormuz and agreeing to a ceasefire. At the same time, Tehran reported attacks on Kharg Island, a key oil export hub, and on the Yahya Abad railway bridge, and threatened strikes "beyond the region" if Washington crosses what it calls its red lines.
Despite the geopolitical turmoil, silver remains about 25% below its pre-war levels, pressured by a stronger US dollar and waning expectations of Federal Reserve rate cuts. With markets increasingly discounting the prospect of monetary easing, silver’s appeal as a safe-haven asset has diminished, keeping prices under pressure even amid the ongoing crisis.
