Silver remains under pressure amid renewed Middle East tensions

Silver prices fell in European trading on Monday, extending losses for a second consecutive session under pressure from a stronger US dollar and rising global oil prices, as military tensions between the United States and Iran intensified once again.

The latest round of military attacks comes amid ongoing negotiations between Washington and Tehran aimed at ending the three-month conflict, with US President Donald Trump seeking stricter conditions related to Iran’s nuclear program.

Price Overview

• Silver prices today: Silver fell 1.7% to $74.00 per ounce, down from the opening level of $75.29, after reaching an intraday high of $76.30.

• At Friday’s settlement, silver lost 0.5%, marking its third decline in the last four sessions due to weaker demand amid rising US Treasury yields.

US dollar

The dollar index rose 0.15% on Monday as part of a recovery from a two-week low, reflecting renewed strength in the US currency against a basket of global currencies.

The advance comes amid heightened market caution and reduced risk appetite after the United States and Iran exchanged a new round of military strikes while continuing intensive negotiations aimed at ending the war and reopening the Strait of Hormuz, one of the world’s most important energy trade routes.

Global oil prices

Oil prices jumped more than 3% on Monday, rebounding from five-week lows as military tensions escalated in the Strait of Hormuz, while Israel expanded its offensive in Lebanon, reducing hopes for a ceasefire across the Middle East.

Latest developments in the Iranian war

• The United States announced strikes on Iranian military sites, and Tehran responded with an attack on an air base.

• The US military said it destroyed Iranian air defense systems, a ground control station, and two drones.

• Iran’s Revolutionary Guard announced that it had retaliated by launching an attack on a US air base.

• Reports indicated that Kuwaiti air defenses intercepted missiles and drone attacks.

• The United States and Iran remain without an agreement to end the war after Trump stated that he is not in a hurry to finalize a deal.

• The US president returned the proposed agreement draft with Iran to include “stricter” conditions related to the nuclear file, extending negotiations for several additional days.

US interest rates

• According to the CME FedWatch Tool, market pricing for a Federal Reserve rate hike in December increased from 47% to 53%.

• Markets continue to price a 99% probability that interest rates will remain unchanged at the June meeting, while the probability of a 25-basis-point rate hike stands at 1%.

• To reassess those expectations, investors are closely monitoring upcoming key US economic data releases, in addition to comments from Federal Reserve officials.