Platinum futures hovered near $1,880 an ounce, close to a ten-week low, weighed down by broad-based weakness in precious metals as expectations grew that central banks may need to raise interest rates to counter inflation risks stemming from Middle East tensions. Renewed fighting in the region and attacks near the strategically vital Strait of Hormuz have strained an already fragile ceasefire and further reduced hopes for a diplomatic resolution to the conflict. The protracted war has also kept energy prices elevated, stoking inflation concerns and reinforcing expectations of tighter monetary policy.
At the same time, the platinum market remains structurally tight. The World Platinum Investment Council forecasts a fourth consecutive annual supply deficit in 2026, as production in major suppliers South Africa and Russia continues to be constrained by aging mines, high operating costs, and sanctions-related obstacles. On the demand side, automotive consumption remains broadly resilient, underpinned by the growth of hybrid vehicles and stricter emissions standards.
