Silver Prices Struggle to Break $60 as Iran War Tightens Grip on Chip Supply Chains

Silver (SI=F) September futures opened at $58.12 on July 16, 2026, up 1.2% from Wednesday's $57.43 close. Prices are now trading lower at $57.07 this morning. The U.S. has continued its fifth consecutive day of airstrikes on Iranian military targets, while Iran has retaliated with its own airstrikes across the Middle East, vowing to keep the Strait of Hormuz closed. The Strait, which once carried 20% of global oil trade, remains critical for global stability and inflation control. If the Fed raises interest rates this year, silver—like gold—will face further headwinds due to its lack of yield. Year-to-date performance: Weekly: -1.9% | Monthly: -16.8% | Annual: +53.1%. On May 14, 2026, silver's annual growth hit 173.3%.

The silver market's volatility reflects the broader tension in the semiconductor supply chain. TSMC's capacity constraints and ASML machine demand, coupled with silver's role in electric vehicle batteries and chip production, are creating a perfect storm for investors.