The iShares Silver Trust (SLV) experienced a sharp decline of 5% during intraday trading on Wednesday, as the ETF tracking physical silver prices came under significant selling pressure.

The sell-off was triggered by heightened geopolitical tensions after former U.S. President Donald Trump declared that an interim peace deal with Iran was "over," raising fears of renewed military conflict. This statement sent oil prices surging and stoked market concerns about rising inflation and the potential for higher U.S. interest rates, creating a negative environment for non-yielding assets like silver. Analysts noted that precious metals retreated as investors reassessed their positioning amid the interplay of rising energy prices and interest rate risks.