Platinum futures hovered around $1,600 an ounce, near late-November levels, under pressure from broad-based weakness across precious metals as escalating tensions in the Strait of Hormuz reignited inflation concerns. US President Donald Trump reinstated a blockade on Iranian vessels transiting the strait and urged countries that benefit from US security efforts in the vital shipping lane to help shoulder the costs, sending oil prices sharply higher. The decision came amid renewed hostilities between Washington and Tehran, with the US targeting Iran’s maritime capabilities and Tehran responding with actions against US allies in the region.
Despite the recent pullback, platinum’s underlying fundamentals remained supportive. The market is on course for a fourth consecutive annual deficit, driven by constrained mine production in South Africa and subdued recycled supply. According to the World Platinum Investment Council, above-ground stocks are projected to decline to about 2.3 million ounces, covering less than three months of global demand.
