🛢 Energy & Commodities risk-off · 0–6 months
A what‑if from the future

What if Hormuz re-mined, ~10mbd pulled off market?

Iran re-mines and closes the Strait of Hormuz, stranding roughly a fifth of seaborne oil; Brent vaults above $120 and tanker war-risk insurance spikes.

9%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 9% · 90% range 0–19% · 40 analogues · measured class vol_spike 31% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — vol_spike ≈0.7371/yr → 31% in 6 mo31%
Analyst prior · editorial share 32% of the class10%
Pooled · weight 87%10%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)10%
Published9%

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 0–6 months 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. Iran re-mines and closes the Strait of Hormuz, stranding roughly a fifth of seaborne oil; Brent vaults above $120 and tanker war-risk insurance spikes. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▲ · Geopolitical risk ▲ · Inflation surprise ▲ · Oil supply risk ▲ · Risk appetite ▼ — 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▲ +10.1%
hist +3.16–+5.62% · other way -10.0% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -5.4%
hist -2.99–-1.64% · other way -0.07% (n=12)
3Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +5.4%
hist +1.54–+3.17% · other way -1.11% (n=12)
4WTI crude CLon Hyperliquid 📈 chartCommodity▲ +4.5%
hist -0.38–+2.41% · other way +2.63% (n=12)
5Tech sector XLK 📈 chartEquity▼ -4.0%
hist -2.55–-1.29% · other way -0.01% (n=12)
6MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -3.3%
hist -3.34–+1.67% · other way +21.38% (n=12)
7S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -2.7%
hist -2.33–-0.71% · other way +1.28% (n=12)
8Energy sector XLEon Hyperliquid 📈 chartEquity▲ +3.1%
hist +0.62–+3.07% · other way -0.06% (n=12)
9Solana SOLon Hyperliquid 📈 chartCrypto▼ -2.5%
hist -2.73–+4.14% · other way -1.19% (n=11)
10Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -2.1%
hist -1.7–+0.21% · other way +11.14% (n=11)
11Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -2.0%
model prior · unmeasured
12Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.2%
hist -1.28–-0.58% · other way -0.53% (n=12)
13Ether ETHon Hyperliquid 📈 chartCrypto▼ -1.9%
hist -2.25–-0.13% · other way +5.94% (n=11)
14United Airlines UAL 📈 chartEquity▼ -2.7%
hist -2.71–+1.64% · other way +6.55% (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 cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -4.0% · United Airlines -2.7% · ExxonMobil +2.2% · Chevron +2.0% · Delta -2.3% · High-yield credit -1.2%

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.

Israel strikes Iran — Operation Rising Lion 2025-06 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Niger coup d'etat 2023-07 Saudi-Russia oil price war 2020-03 February 2018 hot wage print triggers rate scare 2018-02 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Thailand 2014 military coup 2014-05 Egyptian revolution / Mubarak uprising 2011-01 1986 oil price collapse 1986-02 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 1979 Iranian Revolution oil shock 1979-01 Iranian Revolution oil shock 1978-12 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Henry Hub natural gas falls to an all-time inflation-adjusted low on record output 2024-11 Hezbollah pager and device explosions across Lebanon 2024-09 VIX third-highest spike on record 2024-08 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 Nord Stream pipeline sabotage 2022-09 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 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 Houthi drone-and-missile attack on Abu Dhabi oil sites lifts Brent to 7-year high 2022-01 Turkish lira record low on rate cuts 2021-11 European gas crisis intraday record spike 2021-10 Evergrande debt crisis - global selloff 2021-09 Myanmar military coup 2021-02 COVID-19 fourth circuit breaker 2020-03 Abqaiq-Khurais strike triggers the biggest Brent spike on record 2019-09 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Houthi drones strike Saudi East-West crude pipeline 2019-05 Worst Christmas Eve selloff on record 2018-12 Bitcoin Cash hash war capitulation 2018-11
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
USDJPY USDJPYLONG+1.5% · 5d +0.6%70%35 0.35✓ matches cascade
CNY CNYSHORT-0.7% · 5d -0.2%68%35 0.34✓ matches cascade
COIN COINLONG+9.0% · 5d +2.7%69%22 0.33⚠ differs
INR INRSHORT-0.5% · 5d +0.1% ↺ fades70%35 0.32✓ matches cascade
10y yield DGS10LONG+14bp · 5d +6bp66%40 0.31✓ matches cascade
ARM ARMSHORT-5.5% · 5d -6.7%71%9 0.26✓ matches cascade
AMD AMDSHORT-0.6% · 5d -0.3%65%36 0.23✓ matches cascade
CL CLSHORT-1.8% · 5d -1.2%62%35 0.21⚠ differs
TSM TSMSHORT-2.2% · 5d -2.5%64%35 0.21✓ matches cascade
30y yield DGS30LONG+13bp · 5d +6bp61%40 0.21✓ matches cascade
NVDA NVDASHORT-1.8% · 5d -3.8%62%35 0.19✓ matches cascade
US dollar DXYLONG+0.6% · 5d +0.4%61%40 0.19✓ matches cascade
EURUSD EURUSDSHORT-0.7% · 5d -0.2%62%35 0.19✓ matches cascade
HOOD HOODLONG+4.4% · 5d +0.6%60%22 0.19⚠ differs

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.