Silver surges past $73 as US-Iran conflict sustains safe-haven demand

Wednesday 25 March 2026 - 10:20

By: Dakir Madiha

Silver surges past $73 as US-Iran conflict sustains safe-haven demand

Silver climbed sharply in early trading on March 25, breaking above $73 per ounce as investors continued to seek refuge in precious metals amid a US-Iran conflict now approaching its fourth week. The white metal gained more than 5% from the previous session's close, according to COMEX futures data, extending its recovery from a March low near $68. The move reflects the sustained geopolitical risk premium that has gripped commodity markets since the launch of Operation Epic Fury on February 28.

The rally unfolded against a backdrop of mixed diplomatic signals. President Donald Trump told reporters Tuesday that the United States is currently in negotiations with Iran, and a 15-point peace plan was reportedly transmitted to Tehran via Pakistan, according to the New York Times. Iran's parliament speaker dismissed those claims as fake news designed to manipulate financial and oil markets, while Israeli officials told CNN that a ceasefire remains out of reach.

The Strait of Hormuz, through which approximately 20% of global oil supply flows, has been the primary driver of precious metals gains since the conflict began. Iran signaled Tuesday through the International Maritime Organization that it would guarantee safe passage to non-hostile vessels, according to Al Jazeera, but most commercial shipping companies have continued to avoid the route as insurers refuse to cover the risk.

Military activity showed no sign of easing. The Wall Street Journal reported that the United States is preparing to deploy 3,000 soldiers from the 82nd Airborne Division to the region, while Israel's defense minister stated that the military strategy remains unchanged and that operations will continue to intensify. Iran pressed on with retaliatory strikes against Gulf states, with Kuwait reporting drone attacks on its main airport.

The broader metals complex joined the advance on March 25. Platinum rose nearly 4% according to Trading Economics, and copper climbed more than 1%. Gold traded above $4,400 per ounce, well below its January record above $5,100 but recovering from recent lows driven by inflation concerns and the Federal Reserve's restrictive policy stance.

Silver remains sharply below its all-time high of $121.64 set in January, having shed more than 40% during a steep correction fueled by a stronger dollar and expectations that the Fed would hold rates through 2026. J.P. Morgan Research maintained an $81 per ounce average price target for silver over the full year. A structural supply deficit, with the Silver Institute forecasting a shortfall of 67 million ounces in 2026, continues to provide a price floor even during periods of heavy selling.