Inflation fears completely ignite rate hike panic, spot silver extends losses to 9%

Due to rising US inflation triggered by the Middle East war, market expectations for the Federal Reserve to maintain higher interest rates have strengthened, putting pressure on precious metals. The Strait of Hormuz, a key global energy transportation chokepoint, remains almost completely closed, while peace talks between the United States and Iran have stalled. This has heightened concerns that high oil prices will further intensify inflation pressures and, in turn, boosted market expectations for a Fed rate hike.