Platinum futures extended their decline below $1,700 an ounce, reaching their lowest level since late November 2025, as precious metals broadly weakened amid renewed tensions in the Middle East. The United States launched new strikes against Iran following the downing of an American helicopter, driving oil prices higher and amplifying inflation concerns. This escalation has cast further doubt on a fragile ceasefire and the broader prospects for peace, while the near-closure of the Strait of Hormuz continues to pose a major risk to energy flows.
Rising energy costs have deepened fears of persistent inflation and the likelihood of additional monetary tightening by central banks, pressuring non-yielding assets such as precious metals. Nonetheless, the platinum market remains structurally tight. The World Platinum Investment Council forecasts a fourth consecutive annual supply deficit in 2026. Production from key suppliers South Africa and Russia is still constrained by aging mines, elevated operating costs, and sanctions-related disruptions, while demand from the automotive sector is underpinned by the growth of hybrid vehicles and increasingly stringent emissions regulations.
