FX.co ★ Silver Steadies as US-Iran in Focus

Silver stabilized near $73 per ounce on Tuesday after declining for two consecutive sessions, as investors reacted to President Donald Trump’s threat to target Iranian civilian infrastructure if his demands are not met—intensifying worries about the economic fallout of a prolonged conflict. Trump warned he could strike Iranian power plants and bridges if his conditions, including the reopening of the Strait of Hormuz, are not fulfilled by 8 p.m. Eastern Time on Tuesday. Those remarks overshadowed indications that the US and Iran may be edging closer to a ceasefire agreement via international mediators.

Despite the day’s pause, silver remains more than 20% lower since the onset of the conflict, as surging energy prices linked to the Iran war have stoked inflation concerns and increased expectations that central banks will postpone interest rate cuts or even implement further hikes. Market participants now largely anticipate that the Federal Reserve will keep interest rates unchanged for the remainder of the year, a sharp shift from earlier forecasts that had penciled in two rate reductions.