Silver surges as Iran tensions shake global markets again

Silver prices recorded a strong rally at the start of the week, climbing nearly 7% to approach $86 per ounce as investors reacted to mounting geopolitical uncertainty in the Middle East and growing concerns over global inflation. The move came after renewed fears surrounding US-Iran relations boosted demand for precious metals and other safe-haven investments.

Middle East risks drive precious metals higher

During Monday trading, silver briefly touched around $85.5 per ounce after recovering from earlier losses. Market sentiment shifted following comments by US President Donald Trump, who reportedly rejected Iran’s latest peace proposal as “totally unacceptable,” increasing speculation over a possible escalation in the region.

Gold prices also moved upward alongside silver, with spot gold gaining modestly during European trading hours. Analysts noted that investors are increasingly turning to precious metals amid uncertainty surrounding regional security, oil supplies and monetary policy expectations.

Hormuz Strait blockage raises inflation fears

Concerns over energy markets intensified as the Strait of Hormuz remained blocked following recent military developments in the Gulf region. The strategic waterway, located between Iran and Oman, is a key route for global oil shipments, including supplies affecting Europe, Asia and Türkiye.

Higher oil prices linked to the disruption have added pressure on inflation expectations across major economies. Investors are now closely watching whether prolonged tensions in the Middle East could lead to additional increases in fuel and transportation costs worldwide.

Markets await Fed signals and Trump’s China visit

Attention has also shifted toward upcoming US consumer inflation data, which could influence the Federal Reserve’s next interest rate decisions. Expectations for multiple rate cuts have weakened in recent weeks as policymakers continue to assess inflation risks and economic stability.

At the same time, global markets are monitoring Trump’s planned visit to China, where discussions with Chinese President Xi Jinping are expected to include Iran, Taiwan, artificial intelligence and nuclear security. Financial analysts say the outcome of those talks could affect both commodity markets and broader investor confidence.