Silver Surges as U.S.-Iran War Starts. Breaking $95 to Hit Highest Since February

TradingKey - US-Iran conflict drives silver prices higher, with potential to break above $100.

During Asian trading hours on Monday, influenced by the US-Iran conflict, silver ( XAGUSD) prices jumped above $95/oz, reaching a peak of $96.22, marking a new high since February this year. At the time of writing, spot silver was trading at $93.88.

Silver price chart, Source: TradingView

Last Saturday (March 1), US and Israeli forces launched multiple military operations against Iran, including 'Lion’s Roar,' 'Shield of Judah,' and 'Epic Fury,' aimed at targeting senior Iranian officials and military commanders while destroying key infrastructure. Following Zimbabwe, the US once again completed a decapitation strike, with Iran's Supreme Leader Ali Khamenei killed in an airstrike.

In retaliation, Iran subsequently launched military operation 'True Promise IV,' firing missiles at Israeli and US military bases, including those in Bahrain, Kuwait, Qatar, and the UAE. Additionally, Iran's foreign minister stated, 'A new Supreme Leader could be elected within a day or two; regime change is impossible.'

It is evident that Iran has not compromised, while the US continues to ramp up pressure. US President Trump stated, 'Military operations are still in full swing and will continue until all our objectives are met.'

Escalating tensions in the Middle East will provide support for silver prices, which are expected to strengthen further and break the $100 psychological level. However, caution is advised as any sudden mediation could weaken safe-haven demand. A Barclays analyst noted, 'History strongly suggests that one should not chase a rally when conflict breaks out, but rather sell.'