🛢 Energy & Commodities risk-on · 6–18 months
A what‑if from the future

What if Hormuz transit insurance normalizes after standoff?

A mine-clearing and de-escalation sequence lets marine insurers withdraw the Hormuz war surcharge, collapsing the delivered-crude premium and easing inflation.

16%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 16% · 90% range 0–36% · 19 analogues · measured class deflation 44% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 44% in 18 mo44%
Analyst prior · editorial share 36% of the class16%
Pooled · weight 76%17%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)17%
Published16%

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 6–18 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-on shock. A mine-clearing and de-escalation sequence lets marine insurers withdraw the Hormuz war surcharge, collapsing the delivered-crude premium and easing inflation. The trigger decomposes into signed root‑shocks — Diesel ▼ · Geopolitical risk ▼ · 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▼ -4.1%
hist -8.14–+0.61% · other way +14.47% (n=8)
2Brent crude BRENTon Hyperliquid 📈 chartCommodity▼ -3.0%
hist -2.72–-1.07% · other way -1.04% (n=8)
3WTI crude CLon Hyperliquid 📈 chartCommodity▼ -2.5%
hist -2.98–+0.61% · other way -2.63% (n=8)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▲ +2.1%
hist +0.46–+1.6% · other way -0.6% (n=8)
5Energy sector XLEon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.47–-0.02% · other way -0.05% (n=8)
6Tech sector XLK 📈 chartEquity▲ +1.6%
hist +0.59–+1.38% · other way -0.52% (n=8)
7MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +1.3%
hist -6.48–+12.2% · other way +5.54% (n=8)
8S&P 500 SPXon Hyperliquid 📈 chartIndex▲ +1.1%
hist -0.24–+2.41% · other way +0.44% (n=12)
9United Airlines UAL 📈 chartEquity▲ +1.5%
hist -5.67–+14.79% · other way +1.9% (n=8)
10ExxonMobil XOM 📈 chartEquity▼ -1.2%
hist -1.12–-0.26% · other way +1.52% (n=12)
11Solana SOLon Hyperliquid 📈 chartCrypto▲ +1.0%
hist -3.16–+5.18% · other way -1.75% (n=4)
12Chevron CVX 📈 chartEquity▼ -1.1%
hist -1.33–-0.1% · other way +1.81% (n=12)
13Delta DAL 📈 chartEquity▲ +1.3%
hist -1.47–+9.87% · other way -0.43% (n=8)
14Hyperliquid (HYPE) HYPEon HyperliquidCrypto▲ +0.8%
model prior · unmeasured

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: A typical stock-heavy portfolio should benefit. Stay invested; you can lean modestly into the beneficiaries below.
Also moves (not yet on Hyperliquid): Tech sector +1.6% · United Airlines +1.5% · ExxonMobil -1.2% · Chevron -1.1% · Delta +1.3% · High-yield credit +0.5%

Historical precedent — what analogous events actually did

Across 19 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.

Henry Hub natural gas hits a 25-year low amid record US production 2024-11 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 WTI crude futures settle negative as demand collapses 2020-04 Oil collapses from $147 to the $30s as the GFC craters demand 2008-12 Platinum hits an 11-year high on Chinese jewelry demand and deficit 2025-06 Palladium jumps after US pushes G7 sanctions on Russian metal 2024-10 PJM grid emergency during Winter Storm Elliott 2022-12 European TTF gas hits all-time record high 2022-08 Texas grid failure during Winter Storm Uri 2021-02 Norilsk Nickel Arctic diesel spill 2020-05 Silver hits 30-year high as JPMorgan and HSBC face manipulation suits 2010-10 Henry Hub natural gas spot price peaks during 2008 commodity boom 2008-07 Platinum hits all-time record near $2,290 on South African power crisis 2008-03 South Africa Eskom power emergency spikes platinum/PGMs 2008-01 Amaranth Advisors natural-gas blowup 2006-09 Northeast blackout cascading grid failure hits ~55 million 2003-08 Soviet August coup attempt against Gorbachev 1991-08 Gulf War air campaign begins 1991-01 Volcker Saturday Night Special 1979-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
HOOD HOODLONG+23.3% · 5d +4.1%100%6 0.88✓ matches cascade
DAL DALLONG+7.9% · 5d +2.3%85%14 0.66✓ matches cascade
RTX RTXSHORT-3.3% · 5d -2.2%75%19 0.47✓ matches cascade
COIN COINLONG+29.4% · 5d +9.1%75%6 0.44✓ matches cascade
INTC INTCLONG+2.4% · 5d +1.3%74%18 0.37✓ matches cascade
NOC NOCSHORT-2.0% · 5d -0.4%69%18 0.36✓ matches cascade
LMT LMTSHORT-3.8% · 5d -1.7%73%19 0.35✓ matches cascade
Volatility VIXSHORT-5.6% · 5d -5.2%71%18 0.32✓ matches cascade
UAL UALLONG+13.4% · 5d +1.0%67%15 0.31✓ matches cascade
SPX SPXLONG+1.7% · 5d +0.1%66%19 0.29✓ matches cascade
INR INRLONG+0.4% · 5d +0.6%67%15 0.25✓ matches cascade
ARM ARMSHORT-11.3% · 5d -7.0%67%4 0.25⚠ differs
XHB XHBLONG+2.0% · 5d -1.6% ↺ fades64%15 0.24✓ matches cascade
ETH ETHLONG+3.7% · 5d -3.5% ↺ fades65%9 0.22✓ 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.