Silver fell about 2% on Tuesday, slipping below $71.60 per ounce as investors adopted a defensive stance ahead of President Trump’s 8 p.m. ET deadline for reopening the Strait of Hormuz. The decline comes despite reports that Iran has halted direct ceasefire talks in response to Trump’s threats against its civilization, while also confirming overnight US strikes on military targets at Kharg Island and the Yahya Abad bridge. Traditionally viewed as a safe-haven asset, silver is losing its appeal amid a strengthening US dollar and a shift in Federal Reserve expectations—from prospective rate cuts to the possibility of restrictive hikes aimed at containing energy-driven inflation. Elevated oil prices are stoking stagflation concerns, weighing on non-yielding assets and pushing silver to roughly 25% below its pre-war levels. In addition, the metal’s performance is being undermined by forced liquidations, as investors sell holdings to cover losses elsewhere against the backdrop of intensifying conflict in the Middle East.