Platinum futures extended their decline below $1,600 an ounce, approaching late-November lows, as escalating conflict in the Middle East kept inflation risks in sharp focus. Hostilities between the US and Iran have broadened beyond purely military targets to include critical infrastructure, and Tehran has stated that its ceasefire with Washington has effectively collapsed.
Shipping through the Strait of Hormuz has largely ground to a halt, sending oil prices sharply higher and heightening the risk that central banks may need to tighten policy further to contain inflation.
At the same time, softer-than-expected US consumer and producer inflation data led markets to scale back expectations of an imminent Federal Reserve rate hike, providing some support to non-yielding assets such as platinum.
The metal also continued to be supported by a constrained supply outlook. The World Platinum Investment Council still projects a fourth consecutive market deficit in 2026, as demand continues to outstrip supply and above-ground inventories remain close to historically low levels.
