The iShares Silver Trust (SLV) surged 5.17% during intraday trading on Monday, reflecting a sharp rally in the underlying price of silver.

The significant move higher is attributed to the easing of geopolitical tensions after the United States and Iran confirmed they had reached a ceasefire memorandum of understanding. The agreement, which includes plans to reopen the Strait of Hormuz, has boosted market risk appetite, driven a broad rally in precious metals, and alleviated concerns about inflationary pressures stemming from the conflict.

Analysts note that the reduction in Middle East conflict risks has created a favorable environment for silver, with the market's positive reaction underscoring the metal's sensitivity to shifts in geopolitical sentiment. The easing tensions have also led to lower crude oil prices and a softer U.S. dollar, factors that traditionally support precious metals prices.