Silver jumped as much as 2.8% to $96.4 per ounce on Monday before giving back gains, as traders reacted to a major escalation in the Middle East conflict. The US and Israel carried out strikes on Iran over the weekend, resulting in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, and prompting the effective closure of the Strait of Hormuz, a key route for roughly one-fifth of global oil shipments and significant natural gas flows. Tehran retaliated by targeting US assets across the region, including the United Arab Emirates, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq, and Syria. In the US, data on Friday showed producer prices rose more than expected in January, suggesting companies are passing tariff costs to consumers and complicating the path for Federal Reserve rate cuts. Markets are still pricing in two 25-basis-point rate cuts this year amid speculation that recent turmoil could push the central bank to ease monetary policy.
