Silver prices fell more than 10% in European trading on Monday, deepening losses for the fifth consecutive day and hitting their lowest level in three months, amid heavy selling as investors continue to exit precious metals markets, under pressure from the rise of the US dollar in the foreign exchange market.

Escalating tensions between the United States and Iran over the Strait of Hormuz have pushed global oil prices higher again, fueling concerns about accelerating inflation across most parts of the world and strongly boosting expectations of global interest rate hikes.

Price Overview

Silver prices today: silver fell 10.2% to $61.01, the lowest level since December 12, from the session opening level of $67.88, after reaching a high of $69.61.

At Friday’s settlement, silver lost 6.8%, marking its fourth consecutive daily loss.

The white metal, silver, declined 15.75% last week, recording its third consecutive weekly loss and its largest weekly drop since late January, due to global inflation concerns.

Precious metals markets

The decline in silver, traditionally considered a major safe-haven asset during periods of market turmoil, comes amid continued risk aversion in precious metals markets, as the Iran conflict fuels concerns over inflation and rising energy prices.

US dollar

The dollar index rose 0.5% on Monday, extending gains for the second consecutive session, reflecting the continued strength of the US currency against a basket of global currencies.

The rally comes as investors focus on buying the dollar as a preferred safe-haven asset amid the escalation of the war in the Middle East, especially after US President Donald Trump threatened to strike Iran’s electricity grid if Tehran does not reopen the Strait of Hormuz, while Iran’s Revolutionary Guard pledged to respond by targeting infrastructure in neighboring Gulf countries.

Israel announced launching large-scale strikes on Iran, while Saudi Arabia reported that the Iranian military fired two ballistic missiles toward Riyadh.

Global oil prices

Global oil prices rose on Monday at the start of the week’s trading, extending gains that began late last week, due to the escalation of the military conflict around the Strait of Hormuz and disruptions to supplies from the Gulf region.

Fatih Birol, Executive Director of the International Energy Agency, warned that the current crisis poses a serious threat to the global economy and is worse than the energy crisis that occurred in the Middle East during the 1970s.

US interest rates

The Federal Reserve kept US interest rates unchanged last week for the second consecutive meeting and warned about the risks stemming from the Iran war.

Following the meeting, and according to the CME FedWatch tool, markets reduced pricing for the probability of keeping interest rates unchanged at the April meeting from 99% to 95%, while the probability of a 25-basis-point rate hike increased from 1% to 5%.

To reassess these expectations, investors are closely monitoring further economic data releases from the United States, in addition to tracking comments from Federal Reserve officials.

The euro fell in European trading on Monday against a basket of global currencies, extending its losses for the second consecutive day against the US dollar, as investors continued buying the US currency as a preferred safe-haven asset amid the escalation of the war in the Middle East.

Tensions between the United States and Iran have intensified over the Strait of Hormuz, a development that is currently driving global energy prices higher, in a crisis that is casting a negative shadow over the European economy.

Price Overview

Euro exchange rate today: the euro fell 0.35% against the dollar to $1.1532, down from the session opening level of $1.1570, after reaching a high of $1.1570.

The euro ended Friday’s session down 0.15% against the dollar, retreating from a one-week high of $1.1616 recorded in the previous session.

The euro rose 1.35% against the dollar last week, marking its first weekly gain in the past three weeks, supported by the European Central Bank’s hawkish meeting.

US dollar

The dollar index rose more than 0.2% on Monday, extending its gains for the second consecutive session, reflecting the continued strength of the US currency against a basket of global currencies.

The rally comes as investors focus on buying the dollar as a preferred safe-haven asset amid the escalation of the war in the Middle East, especially after US President Donald Trump threatened to strike Iran’s electricity grid if Tehran does not reopen the Strait of Hormuz, while Iran’s Revolutionary Guard pledged to respond by targeting infrastructure in neighboring Gulf countries.

Israel announced launching large-scale strikes on Iran, while Saudi Arabia reported that the Iranian military fired two ballistic missiles toward Riyadh.

Global energy prices

Oil and gas prices rose on Monday at the start of the week’s trading, extending gains that began late last week, due to the escalation of the military conflict around the Strait of Hormuz and disruptions to supplies from the Gulf region.

Fatih Birol, Executive Director of the International Energy Agency, warned that the current crisis poses a serious threat to the global economy and is worse than the energy crisis that occurred in the Middle East during the 1970s.

Rodrigo Catril, a currency strategist at National Australia Bank, said the market tends to believe that countries and economies with surplus energy supplies are likely to outperform those facing shortages.

Catril added that the euro and the yen are therefore struggling to perform, and if the conflict in the Middle East persists for an extended period, both currencies are likely to come under greater pressure.

European interest rates

The European Central Bank kept interest rates unchanged last week for the sixth consecutive meeting.

Sources told Reuters that the European Central Bank is likely to begin discussing interest rate hikes next month.

Following the meeting, money markets increased pricing for a 25-basis-point rate hike by the European Central Bank at the April meeting from 1% to 25%.

To reassess these expectations, investors are awaiting further economic data from the eurozone on inflation, unemployment, and wage levels.

The Japanese yen fell in Asian trading on Monday against a basket of major and minor currencies, extending its losses for the second consecutive day against the US dollar and moving lower toward its lowest level in 20 months. The decline comes as investors continue buying the US dollar as a preferred safe-haven asset amid the escalation of the war in the Middle East.

The yen’s weakness comes under the watch of Japanese authorities, after Japan’s top currency diplomat stated that the government is ready to take action to address volatility in the domestic currency in the foreign exchange market.

Price Overview

Japanese yen exchange rate today: the US dollar rose 0.25% against the yen to ¥159.62, up from the session opening level of ¥159.20, with a session low of ¥159.01.

The yen ended Friday’s session down about 1.0% against the dollar, resuming its losses that had paused the previous day during a recovery from a 20-month low of ¥159.90.

US dollar

The dollar index rose more than 0.2% on Monday, extending its gains for the second consecutive session, reflecting the continued strength of the US currency against a basket of global currencies.

The rally comes as investors focus on buying the dollar as a preferred safe-haven asset amid the escalation of the war in the Middle East, especially after US President Donald Trump threatened to strike Iran’s electricity grid if Tehran does not reopen the Strait of Hormuz, while Iran’s Revolutionary Guard pledged to respond by targeting infrastructure in neighboring Gulf countries.

Israel announced launching large-scale strikes on Iran, while Saudi Arabia reported that the Iranian military fired two ballistic missiles toward Riyadh.

Fatih Birol, Executive Director of the International Energy Agency, warned that the current crisis poses a serious threat to the global economy and is worse than the energy crisis that occurred in the Middle East during the 1970s.

Japanese authorities

Atsuki Mimura, Japan’s Vice Minister of Finance for International Affairs and top currency diplomat, issued a strong warning on Monday about the current risks in the foreign exchange market resulting from geopolitical turmoil.

Mimura said that the “intense speculation” currently seen in oil and gas markets due to the Iran war could spill over into the foreign exchange market, leading to “irrational” fluctuations in the yen’s exchange rate.

He added that Japanese authorities are closely monitoring currency movements with the highest level of vigilance, stressing that the government “will not tolerate excessive speculative moves” that do not reflect economic fundamentals.

Japanese interest rates

The Bank of Japan kept interest rates unchanged last week for the second consecutive meeting.

Following the meeting, markets continued to price the probability of a quarter-point rate hike at the April meeting at below 30%.

To reassess these expectations, investors are awaiting further data on inflation, unemployment, and wages in Japan.

Wall Street ended Friday’s session with sharp losses, as the S&P 500 closed at its lowest level in six months, with the war between the United States and Israel against Iran entering its fourth week, heightening concerns over inflation and the potential for higher interest rates.

The fallout from the Middle East conflict continues to show no signs of easing. The US military has deployed an amphibious assault ship carrying thousands of additional Marines and sailors to the region, while Iran’s new Supreme Leader praised the country’s “unity” and “resistance.”

Jack Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma, said: “The market is starting to accept that this conflict could last longer than initially expected, and I think that’s why markets are pulling back. It may not last just a few weeks — it could stretch into months.”

Big tech stocks decline:

Shares of major technology companies fell, with Nvidia and Tesla dropping more than 3% each. Meanwhile, Alphabet, Meta, and Microsoft declined by around 2% each.

US Treasury bonds also fell for a third consecutive session, alongside a broader selloff in government bonds in the UK and Europe, as the Middle East conflict kept oil prices elevated and reinforced inflation concerns.

US interest rate futures indicate that markets now see a higher probability of the Federal Reserve raising rates by the end of 2026 than cutting them, according to the CME FedWatch tool.

Padhraic Garvey, Head of Global Rates and Debt Strategy at ING in New York, said: “We are in an environment that is pushing rates higher, driven by expectations of rising inflation linked to oil prices. With the war entering its fourth week, this pressure does not appear to be fading anytime soon.”

Stock index performance:

The S&P 500 fell 1.51% to close at 6,506.48 points, its lowest level since September, posting a weekly loss of 2%.

The Nasdaq dropped 2.01% to 21,647.61 points, now about 10% below its October 29 peak, also recording a 2% weekly decline.

The Dow Jones Industrial Average declined 0.96% to 45,577.47 points, with weekly losses reaching 2.1%.

The Russell 2000 index of small-cap stocks fell 2.26%, leaving it down 10% from its January 22 high.

Nine of the 11 S&P 500 sectors ended lower, led by utilities, which dropped 4.11%, followed by real estate, down 3.15%.

The energy sector was nearly flat on the day but marked its thirteenth consecutive weekly gain — its longest streak since at least the late 1980s — supported by geopolitical tensions in Venezuela and the Middle East.

Friday also saw the simultaneous expiration of stock options, index options, and futures contracts — known as “triple witching” — driving a surge in trading volumes to 27.5 billion shares, compared to an average of 20.1 billion over the previous 20 sessions.

Over the week, the S&P 500 lost about 1.9%, while both the Nasdaq and Dow fell more than 2%. Since the start of the Iran war on February 28, the S&P 500 has declined 5.4%, the Nasdaq is down 4.5%, and the Dow has dropped about 7%, with all three indexes trading below their 200-day moving averages, reflecting deteriorating investor sentiment.

Shares of Super Micro Computer plunged 33% after three individuals linked to the company were accused of smuggling at least $2.5 billion worth of AI technology to China, while rival Dell Technologies saw its shares rise.

Meanwhile, FedEx provided an upbeat outlook, noting that global demand remains stable despite geopolitical tensions, sending its shares up about 1%.

Declining stocks outnumbered advancers in the S&P 500 by a ratio of 3.4 to 1, with the index recording 11 new highs and 36 new lows, while the Nasdaq posted 43 new highs versus 274 new lows.