The iShares Silver Trust (SLV) experienced a sharp decline of 5.05% during Tuesday's pre-market trading session, reflecting significant selling pressure in the silver market.

The sell-off was primarily driven by heightened uncertainty surrounding US-Iran negotiations, which triggered broad risk aversion across financial markets. Investors adopted a defensive stance amid geopolitical tensions, leading to pressure on risk assets including silver. The postponement of a planned US military strike against Iran contributed to market volatility and risk-off sentiment.

Additional factors contributing to silver's weakness include India's recent restrictions on silver imports, which reduced demand from one of the world's largest silver consumers. Furthermore, analysts note that the narrative of silver's outperformance relative to gold has been fading due to easing physical market tightness and reduced industrial demand expectations, particularly from China's photovoltaic sector.