Silver hovered around $57.7 per ounce on Friday after falling more than 3% in the previous session, as surging oil prices fueled by the escalating Middle East conflict strengthened the case for tighter US monetary policy.
President Donald Trump threatened broader military action against Iran and said Tehran would be held responsible for any future Houthi attacks on Red Sea shipping, helping propel Brent crude above $100 a barrel for the first time since May.
The jump in oil prices stoked inflation concerns, reinforcing expectations of tighter Fed policy and weighing on non-yielding assets.
Markets now see a 34% chance of a rate hike next week, with the probability of a September increase exceeding 78%.
Separately, fresh US tariffs of 10%–12.5% on imports from major trading partners added to market uncertainty.
Despite the recent pullback, silver remained on track for a weekly gain.