Platinum futures fell to around $1,900 per ounce, marking a four-week low, as uncertainty over diplomatic efforts in the Middle East kept inflation risks and expectations of prolonged high interest rates in focus. Key points of contention persist, including Iran’s insistence on maintaining control over the Strait of Hormuz and continuing its nuclear program, while the United States refuses to ease sanctions or accept what it considers an unfavorable deal. Even if talks advance, elevated energy prices are expected to keep inflation under pressure, reinforcing the case for interest rates to remain higher for longer.
At the same time, the platinum market remains structurally tight. The World Platinum Investment Council forecasts a fourth consecutive annual supply deficit in 2026. Automotive demand is broadly resilient, supported by the growth of hybrid vehicles and stricter emissions standards, even as jewelry demand softens amid higher prices, particularly in China.
