⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if China air-sea quarantine cuts Taiwan's fuel imports?

A declared customs-inspection regime throttles oil and LNG inflows to import-dependent Taiwan; energy-rationing fear spikes JKM and diesel, TWD and SMH fall sharply, VIX rises.

8%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 8% · 90% range 0–18% · 40 analogues · measured class supply_chain 46% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 46% in 3 yr46%
Analyst prior · editorial share 13% of the class6%
Pooled · weight 87%8%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)8%
Published8%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A declared customs-inspection regime throttles oil and LNG inflows to import-dependent Taiwan; energy-rationing fear spikes JKM and diesel, TWD and SMH fall sharply, VIX rises. The trigger decomposes into signed root‑shocks — Diesel ▲ · European energy ▲ · Geopolitical risk ▲ · Risk appetite ▼ · Semiconductor supply risk ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +9.9%
hist +1.8–+7.07% · other way -9.73% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -4.2%
hist -2.42–-1.07% · other way -0.11% (n=12)
3Tech sector XLK 📈 chartEquity▼ -2.8%
hist -1.5–-0.66% · other way -0.17% (n=12)
4Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.5%
hist -1.7–-0.8% · other way -0.81% (n=12)
5TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.4%
hist -2.92–-0.14% · other way -1.13% (n=12)
6S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -2.3%
hist -2.55–-0.32% · other way +1.57% (n=12)
7Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.3%
hist -2.14–-0.32% · other way +2.19% (n=12)
8MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -2.3%
hist -2.79–+2.73% · other way +18.62% (n=12)
9Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.9%
hist -2.83–+0.14% · other way -6.5% (n=11)
10ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.7%
hist -3.17–+0.41% · other way -4.28% (n=12)
11AMD AMDon Hyperliquid 📈 chartEquity▼ -1.7%
hist -2.86–+0.08% · other way -3.44% (n=12)
12Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.7%
hist -1.05–-0.39% · other way -0.54% (n=11)
13Micron MUon Hyperliquid 📈 chartEquity▼ -1.7%
hist -1.28–-0.07% · other way +0.15% (n=12)
14Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.7%
hist -1.12–-0.44% · other way -0.91% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -2.8% · High-yield credit -1.1% · Financials -0.8% · JPMorgan -0.6% · Lockheed +0.7% · Northrop +0.6%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 1979 Iranian Revolution oil shock 1979-01 Israel strikes Iran — Operation Rising Lion 2025-06 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Niger coup d'etat 2023-07 Saudi-Russia oil price war 2020-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 Soviet August coup attempt against Gorbachev 1991-08 1986 oil price collapse 1986-02 Silver Thursday 1980-03 Soviet invasion of Afghanistan 1979-12 Volcker Saturday Night Special 1979-10 Iranian Revolution oil shock 1978-12 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 Henry Hub natural gas falls to an all-time inflation-adjusted low on record output 2024-11 ASML bookings-miss crash 2024-10 Hezbollah pager and device explosions across Lebanon 2024-09 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 April 2024 Iranian drone-and-missile barrage on Israel 2024-04 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Gabon coup d'etat 2023-08 Wagner Group mutiny against the Kremlin 2023-06 ExxonMobil posts most profitable year for any US oil company 2023-01 PJM grid emergency during Winter Storm Elliott 2022-12 Nord Stream pipeline sabotage 2022-09 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Netflix subscriber-loss crash 2022-04 US-led 240-million-barrel SPR release answers the Ukraine spike 2022-03 Houthi drone-and-missile strike on Aramco's Jeddah depot 2022-03
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
USDJPY USDJPYLONG+1.1% · 5d +0.2%69%31 0.37⚠ differs
Volatility VIXLONG+2.5% · 5d +3.0%68%32 0.30✓ matches cascade
AMD AMDSHORT-1.9% · 5d -1.9%69%34 0.29✓ matches cascade
XLF XLFLONG+1.0% · 5d +0.2%69%31 0.29⚠ differs
Bitcoin BTCSHORT-3.1% · 5d -3.3%68%30 0.26✓ matches cascade
XLK XLKSHORT-0.2% · 5d -0.8%66%31 0.25✓ matches cascade
NVDA NVDASHORT-1.0% · 5d -3.7%66%31 0.24✓ matches cascade
JPM JPMLONG+1.6% · 5d +0.0%65%34 0.23⚠ differs
INTC INTCSHORT-4.1% · 5d -1.3%61%34 0.22✓ matches cascade
LMT LMTLONG+2.8% · 5d +0.3%62%40 0.22✓ matches cascade
TSM TSMSHORT-1.6% · 5d -2.6%63%31 0.21✓ matches cascade
AVGO AVGOSHORT-0.2% · 5d -3.0%63%31 0.21✓ matches cascade
NDX NDXSHORT-0.4% · 5d -1.1%64%33 0.20✓ matches cascade
GBPUSD GBPUSDSHORT-0.5% · 5d -0.2%62%31 0.20✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.