FX.co ★ Silver Falls on Renewed Hormuz Tensions

Silver fell nearly 2% toward $79 an ounce on Monday, paring some of last week’s gains, as renewed tensions in the Strait of Hormuz sent oil prices sharply higher and reignited inflation fears. In the latest escalation, President Donald Trump said the US Navy fired on and seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored orders to stop while exiting the Strait of Hormuz. In response, Tehran targeted several ships and moved to reassert control over the waterway, arguing that the US blockade of Iran-linked vessels violated the existing ceasefire agreement.

Trump nevertheless suggested there was still room for a negotiated settlement ahead of another round of talks in Pakistan, though Iran has signaled it sees little chance of a deal. The protracted conflict has triggered a historic energy supply shock, amplifying inflation pressures and increasing the odds of additional central bank interest rate hikes—developments that have weighed on precious metals. Silver remains roughly 15% lower since the start of the war.