🏛 Central Banks & Macro risk-off · 0–6 months
A what‑if from the future

What if Oil-spike inflation scare repriced across rates curves?

An Iran supply shock jolts breakeven inflation higher and forces a hawkish repricing of global rate-cut expectations, lifting real yields and pressuring equities.

11%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 11% · 90% range 2–20% · 40 analogues · measured class monetary_tightening 73% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — monetary_tightening ≈2.59/yr → 73% in 6 mo73%
Analyst prior · editorial share 15% of the class11%
Pooled · weight 87%11%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)11%
Published11%

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. An Iran supply shock jolts breakeven inflation higher and forces a hawkish repricing of global rate-cut expectations, lifting real yields and pressuring equities. The trigger decomposes into signed root‑shocks — Fed policy path ▲ · Inflation expectations ▲ · Oil supply risk ▲ · Real yields ▲ · 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
1Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +3.6%
hist -0.83–+2.07% · other way +2.87% (n=8)
2WTI crude CLon Hyperliquid 📈 chartCommodity▲ +3.0%
hist -2.22–+1.64% · other way +2.66% (n=11)
3Tech sector XLK 📈 chartEquity▼ -1.9%
hist -1.31–-0.53% · other way +0.66% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.8%
hist -1.12–-0.42% · other way -0.08% (n=12)
5MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.66–+0.31% · other way +6.94% (n=12)
6Energy sector XLEon Hyperliquid 📈 chartEquity▲ +2.1%
hist -0.8–+1.19% · other way +1.63% (n=12)
7Gold XAUon Hyperliquid 📈 chartCommodity▼ -1.5%
hist -1.42–-0.31% · other way +-0.0% (n=11)
830y Treasury yield DGS30 📈 chartRate▲ +15bp
hist +0.28–+20.04% · other way +12.9% (n=12)
9Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.4%
hist -1.82–+2.5% · other way +5.81% (n=7)
1010y Treasury yield DGS10 📈 chartRate▲ +14bp
hist -1.21–+21.4% · other way +13.7% (n=12)
11United Airlines UAL 📈 chartEquity▼ -1.8%
hist -3.49–+5.29% · other way +7.29% (n=9)
12ExxonMobil XOM 📈 chartEquity▲ +1.5%
hist +0.47–+0.84% · other way +0.51% (n=12)
13Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.2%
model prior · unmeasured
14Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -1.1%
hist -7.75–+1.62% · other way +0.4% (n=8)

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 -1.9% · 30y Treasury yield +15bp · 10y Treasury yield +14bp · United Airlines -1.8% · ExxonMobil +1.5% · Chevron +1.4%

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 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 Saudi-Russia oil price war 2020-03 OPEC abandons output defense, opting for market share vs US shale 2014-11 ECB's ill-timed pre-crisis rate hike 2008-07 1986 oil price collapse 1986-02 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Volcker Saturday Night Special 1979-10 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 Hezbollah pager and device explosions across Lebanon 2024-09 April 2024 Iranian drone-and-missile barrage on Israel 2024-04 Ukrainian drone strikes hit Russian refineries, lifting crude and gasoline 2024-03 Wagner Group mutiny against the Kremlin 2023-06 ExxonMobil posts most profitable year for any US oil company 2023-01 May 2022 US CPI sends S&P into a bear market 2022-06 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 Bank of England's first post-pandemic rate hike 2021-12 Fed retires 'transitory' 2021-11 Turkish lira record low on rate cuts 2021-11 Turkey fires central-bank governor Agbal, sparking lira plunge 2021-03 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 Bitcoin Cash hash war capitulation 2018-11 February 2018 hot wage print triggers rate scare 2018-02 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Russian ruble 'Black Tuesday' 2014-12 Libya civil war halts output and lifts Brent above $100 2011-02 Egyptian revolution / Mubarak uprising 2011-01 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 2006 Lebanon War oil spike 2006-07
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
AMD AMDSHORT-3.6% · 5d -1.6%77%35 0.43✓ matches cascade
HOOD HOODLONG+4.8% · 5d -0.8% ↺ fades70%18 0.38⚠ differs
CNY CNYSHORT-0.7% · 5d -0.2%69%34 0.38✓ matches cascade
CL CLSHORT-3.1% · 5d -1.8%67%34 0.28⚠ differs
COIN COINLONG+9.1% · 5d +2.3%65%18 0.27⚠ differs
Bitcoin BTCSHORT-6.4% · 5d -6.2%66%29 0.26✓ matches cascade
NVDA NVDASHORT-4.2% · 5d -6.2%65%34 0.26✓ matches cascade
XLE XLESHORT-1.5% · 5d -1.2%63%34 0.25⚠ differs
USDJPY USDJPYLONG+1.3% · 5d +0.1%63%34 0.22✓ matches cascade
TRY TRYLONG+0.2% · 5d +1.3%61%34 0.22⚠ differs
MRVL MRVLSHORT-1.1% · 5d -2.4%64%34 0.22✓ matches cascade
BRENT BRENTSHORT-2.0% · 5d -1.0%62%32 0.21⚠ differs
NDX NDXSHORT-0.3% · 5d -0.9%64%35 0.21✓ matches cascade
ETH ETHSHORT-4.7% · 5d -4.5%64%25 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.