Shares of the iShares Silver Trust plunged 5.1% to $55.17, marking the steepest single-session drop in weeks as a collision of macro forces — surging oil, rising bond yields, and renewed dollar strength — hammered the metal that underpins the fund. SLV Sinks 5% as Oil Spikes, Yields Hit 19-Year Highs, and the Dollar Rallies — Is Silver's 2026 Bull Run Unraveling?

Shares of the iShares Silver Trust cratered 5.1% to $55.17 on Monday, their sharpest one-day decline this fall, as a toxic cocktail of geopolitical risk, surging oil prices, and the strongest Treasury yields in nearly two decades crushed demand for non-yielding precious metals. The selloff erased all gains from the past week and leaves SLV holders staring at a painful question: whether the forces now battering silver are temporary or structural.

  • Trump's Rejection of Iran's Peace Offer Sent Oil — and Inflation Fears — Surging. President Trump said on September 26 that he was "rejecting" Iran's seven-day plan to reopen the Strait of Hormuz.

Oil prices jumped Monday in Asia trading , with WTI rising 1.87% to $94.14 and Brent gaining 2.89% to $107.34 a barrel. Higher oil feeds directly into consumer prices — gasoline, shipping, manufacturing — and makes it harder for the Federal Reserve to stop raising interest rates. For silver, which generates no income for holders, every rate hike increases the opportunity cost of owning it versus a Treasury bond that now actually pays investors handsomely.

  • Bond Yields at Levels Not Seen Since 2007 Make Silver Harder to Own. The 10-year Treasury yield rose to 5.21% on September 28, marking a 0.05 percentage point increase from the previous session.

Borrowing costs remain at 2007 highs, with roughly 70% odds of another quarter-point Fed rate hike at the next meeting and swaps pricing in three more over the coming year. When bonds pay 5%+ risk-free, investors have less reason to park money in a metal that pays nothing and costs money to store.

  • A Stronger Dollar Compounds the Pain. The dollar index rose to 101.11, up 1.70% over the past month. Silver is priced in dollars worldwide, so a stronger greenback makes it more expensive for foreign buyers — shrinking demand at the margins precisely when selling pressure is already intense.

  • Silver Is Still Up 30% Year-Over-Year, But Momentum Is Fading Fast. Silver's price has fallen 8.21% over the past month, though it remains 30.14% higher than a year ago. SLV has dropped from $60.73 to $55.17 in just five trading sessions — a 9.2% weekly drawdown. Investors now await the Fed's preferred inflation gauge and key jobs data this week , which will determine whether the rate-hike cycle intensifies further. If it does, silver's floor may be considerably lower.