Platinum futures fell more than 2% to below $2,100 an ounce, pulling back from the four-week high reached on April 17 amid a broader selloff in precious metals. The decline followed a sharp rise in oil prices triggered by renewed hostilities in the Strait of Hormuz, as escalating tensions between the US and Iran undermined diplomatic prospects ahead of a looming ceasefire deadline. The protracted conflict has unleashed a historic energy supply shock, heightening inflation risks and reinforcing expectations of further central bank rate hikes, both of which have pressured precious metals.
At the same time, the platinum market remains structurally tight. Production is heavily concentrated in South Africa and Russia, leaving global supply highly exposed to disruptions. In South Africa, aging mines, elevated power costs, and only incremental contributions from new projects such as Platreef continue to constrain output growth. In Russia, sanctions-related restrictions are expected to curb production further. While recycling volumes have increased, they still fall short of offsetting the decline in primary mine supply.
