Silver opened at its lowest price in eight months on Friday, July 17, 2026, with July futures starting the day at $55.83 per ounce, down 0.6% from Thursday's close. By 8:13 a.m. ET, the price had slipped further to $55.58.
According to Yahoo Finance, the drop came as U.S. military strikes on Iranian targets entered their sixth consecutive day. The fighting stems from Iranian attacks on oil tankers trying to navigate the Strait of Hormuz. Iran has refused to give up control of the strait and has responded with its own strikes across the Middle East.
The silver price decline has been steep over a short period. Compared to one week ago, the opening price Friday was down 6.9%. Compared to one month ago, it was down 20.6%. One year ago, silver was up 47.5% from this date. For context, silver's year-over-year growth rate reached 173.3% as recently as May 14 of this year.
Oil prices have moved in the opposite direction. West Texas Intermediate and Brent crude both posted their largest one-week percentage gains in months, according to MarketWatch. Oil is up nearly 13% over the last five days. That surge has pushed inflation back onto front pages and led many analysts to expect the Federal Reserve will raise interest rates later this year.
Higher interest rates tend to weigh on silver and other precious metals. Silver does not pay interest or dividends, so when rates rise, yield-bearing investments become relatively more attractive. Many analysts believe the threat of higher rates alone is enough to keep silver prices under pressure for some time.
The Strait of Hormuz is a narrow waterway between Iran and the Arabian Peninsula. Before the current conflict, it handled roughly a fifth of global oil traffic, making it one of the most critical chokepoints in the world energy market. Its disruption has rippled across multiple commodity markets simultaneously.
Investors who hold silver and are watching prices fall may also be thinking about what happens when they eventually sell. The IRS classifies physical precious metals, including bars, rounds, and coins, as collectibles. That classification affects how gains are taxed. Short-term gains on silver held one year or less are taxed as ordinary income, which can reach as high as 37%. For silver held longer than one year, the gain is still taxed at the investor's ordinary income rate, but capped at 28%. That is different from stocks, where long-term gains are taxed at 0%, 15%, or 20% depending on income. Investors in the 10%, 12%, 22%, or 24% tax brackets would pay their regular rate on silver gains. Those in the 32%, 35%, or 37% brackets would be capped at 28%.
The conflict between the U.S. and Iran shows no sign of a near-term resolution. Iran has not indicated it will relinquish control of the Strait of Hormuz, and the U.S. has continued its airstrike campaign. With oil prices rising and inflation concerns building, the conditions that have pushed silver lower appear likely to remain in place for the immediate future.
