Silver extended its slide to drop below $86 per ounce on Wednesday, as investors weighed mounting tensions in the Middle East against fresh US inflation data and their combined implications for Federal Reserve policy. The US-Israeli campaign against Iran entered its 12th day, with the Pentagon reporting the most intense strikes of the conflict so far and vowing to continue operations until the Islamic Republic is defeated. This position contrasted with remarks from President Trump, who suggested the conflict could end sooner than many expect. The war has effectively closed the Strait of Hormuz, driving oil prices higher and reigniting concerns about global inflation, prompting markets to dial back expectations for interest rate cuts from major central banks. At the same time, US CPI data showed headline inflation holding steady at 2.4% in February—before the Iran war began—its lowest reading since May 2025, while core inflation was unchanged at 2.5%, the lowest since March 2021.