Investors Flock to Safe Havens Amid US-Iran Tensions, Silver Prices Rise

Silver prices surged sharply in early-week trading. The precious metal rose about 7% to approach US$86 per ounce, or approximately Rp1.46 million per ounce assuming an exchange rate of Rp17,000 per US dollar.

This increase also marked the highest silver price level in nearly the last two months. The surge occurred amid growing market concerns over the geopolitical situation in the Middle East, particularly after negotiations between the United States and Iran hit another impasse.

“Investors have flocked to safe-haven assets after US President Donald Trump rejected Iran’s peace proposal, calling it ‘completely unacceptable’,” the AA report stated, as quoted on Tuesday, 12 May 2026.

That statement sparked fears that conflict in the region could heat up again in the near future. In addition to silver, gold prices also strengthened. The spot gold price was recorded up 0.3% to US$4,725 per ounce, equivalent to about Rp80.3 million per ounce.

Markets are also still monitoring attacks that occurred in the Middle East over the weekend. The situation is seen as threatening the fragile ceasefire reached in April.

On the other hand, the ongoing blockade of the Strait of Hormuz is adding pressure to the global energy market. That strategic shipping lane is one of the world’s main oil distribution routes. The condition has kept oil prices high and increased inflation risks in various countries.

The rise in energy prices is one factor causing market participants to reduce expectations of interest rate cuts by the US Federal Reserve.

Previously, markets expected the Fed to cut rates twice this year. However, market projections are now divided between the possibility of limited cuts or no reductions at all throughout 2026.

Market participants are currently awaiting US consumer inflation data scheduled for release on Tuesday local time. That data is expected to determine the direction of the Fed’s future interest rate policy.