Silver Price Forecast: XAG/USD falls toward $58.00 as Trump declares Iran truce “finished”

Silver price (XAG/USD) extends its losses for the third consecutive day, trading around $58.30 per troy ounce during the European hours on Wednesday. The non-yielding white metal struggled as renewed Middle East escalations threatened the interim United States (US)-Iran peace deal. The conflict drove oil prices higher, stoking fresh inflation fears and raising the prospect of higher interest rates, which further weighed on the non-interest-bearing asset.

The tentative ceasefire between the US and Iran has officially collapsed after US President Donald Trump declared the truce finished during the annual NATO summit in Ankara. Sitting alongside NATO Secretary General Mark Rutte, Trump stated that he considers the agreement over, calling it "just a waste of time" and raising the immediate prospect of renewed military conflict between the two nations. The breakdown in diplomacy was immediately followed by economic action, as the US revoked a critical sanctions waiver that had previously permitted Iran to sell crude oil on global markets.

This sudden re-escalation has rapidly injected volatility into the energy sector, as the hostile environment discourages regional producers and commercial shipowners from navigating the Strait of Hormuz. With shipping companies actively avoiding the volatile chokepoint, concerns are mounting over severe, renewed disruptions to the global energy supply.

Meanwhile, financial and commodity markets are balancing these geopolitical anxieties against upcoming macroeconomic data, as traders look to the minutes of the Federal Reserve’s June meeting for clues on interest rates. While silver had recently rebounded on the back of softer-than-expected US jobs data, which prompted investors to scale back expectations for near-term Fed rate hikes, the sudden conflict in the Middle East has clouded the horizon, leaving the broader policy and market outlook highly uncertain.