Silver falls below $86 as Middle East tensions and Federal Reserve policy expectations exert pressure

⑴ Silver continued its decline on Wednesday, falling below $86 per ounce as investors assessed the impact of escalating tensions in the Middle East and the latest US inflation data on the Federal Reserve’s policy outlook. ⑵ The US and Israel’s military actions against Iran have entered the 12th day, with the Pentagon reporting the most intense strikes since the conflict began and pledging to continue operations until Iran is defeated. This stance contrasts with Trump’s remarks suggesting the conflict may end sooner than expected. ⑶ The war has effectively closed the Strait of Hormuz, pushing up oil prices and reigniting global inflation concerns, leading markets to scale back expectations for rate cuts by major central banks. ⑷ Meanwhile, US inflation in February remained steady at 2.4%, a figure recorded before the Iran war began. The market generally expects the Federal Reserve to keep rates unchanged next week, with traders anticipating only one 25-basis-point rate cut this year, possibly in September.