⚔ Geopolitics risk-off · 0–6 months
A what‑if from the future

What if Hormuz and the Red Sea are disrupted simultaneously and overwhelm rerouting capacity?

Concurrent disruption of two major maritime chokepoints (e.g. Hormuz plus Red Sea) overwhelms rerouting capacity, spiking freight, oil and insurance in a compound supply shock.

6%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 6% · 90% range 0–14% · 40 analogues · measured class trade_war 49% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 49% in 6 mo49%
Analyst prior · editorial share 12% of the class6%
Pooled · weight 87%7%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)7%
Published6%

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. Concurrent disruption of two major maritime chokepoints (e.g. Hormuz plus Red Sea) overwhelms rerouting capacity, spiking freight, oil and insurance in a compound supply shock. The trigger decomposes into signed root‑shocks — Geopolitical risk ▲ · Inflation surprise ▲ · Oil supply risk ▲ · Risk appetite ▼ · Trade tension ▲ — 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▲ +10.8%
hist +3.62–+7.03% · other way -3.16% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -6.8%
hist -3.65–-2.04% · other way -0.58% (n=12)
3Tech sector XLK 📈 chartEquity▼ -5.0%
hist -3.08–-1.58% · other way -0.48% (n=12)
4Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -3.8%
hist -2.4–-1.41% · other way +0.56% (n=12)
5Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +3.6%
hist +0.14–+2.22% · other way -3.86% (n=12)
6MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -3.5%
hist -3.09–+0.73% · other way +30.65% (n=12)
7S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -2.9%
hist -2.99–-0.46% · other way +1.53% (n=12)
8WTI crude CLon Hyperliquid 📈 chartCommodity▲ +2.8%
hist -1.51–+1.74% · other way -3.53% (n=12)
9Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -3.0%
hist -4.83–+0.15% · other way +1.2% (n=12)
10Solana SOLon Hyperliquid 📈 chartCrypto▼ -2.6%
hist -1.53–-0.47% · other way -2.2% (n=12)
11TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.8%
hist -2.82–-0.38% · other way +1.09% (n=12)
12AMD AMDon Hyperliquid 📈 chartEquity▼ -2.5%
hist -2.04–-0.39% · other way -0.85% (n=12)
13Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -2.5%
hist -1.9–+0.36% · other way -2.41% (n=12)
14Micron MUon Hyperliquid 📈 chartEquity▼ -2.5%
hist -1.58–-0.86% · other way +1.98% (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 -5.0% · High-yield credit -1.4% · United Airlines -1.8% · ExxonMobil +1.5% · Chevron +1.4% · Chinese yuan -1.1%

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 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 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 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 Smoot-Hawley clears the US House 1929-05 US-China extend tariff truce by another 90 days 2025-08 US and China agree Geneva tariff truce, slashing rates 2025-05 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 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 Abqaiq-Khurais strike triggers the biggest Brent spike on record 2019-09 Houthi drones strike Saudi East-West crude pipeline 2019-05 Bitcoin Cash hash war capitulation 2018-11 US List 3 tariffs on $200B of Chinese goods finalized 2018-09 US Section 301 List 1 tariffs take effect on China 2018-07 China retaliates: $50B tariff list incl. soybeans 2018-04 US Section 232 steel & aluminum tariffs imposed 2018-03 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 Mexican peso crash on Trump 2016 win 2016-11 Libya civil war halts output and lifts Brent above $100 2011-02 Egyptian revolution / Mubarak uprising 2011-01 ECB's ill-timed pre-crisis rate hike 2008-07
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
HOOD HOODLONG+8.3% · 5d +0.8%74%17 0.43⚠ differs
COIN COINLONG+10.6% · 5d +3.7%74%17 0.41⚠ differs
CNY CNYSHORT-0.8% · 5d -0.2%69%34 0.38✓ matches cascade
BABA BABASHORT-2.7% · 5d -2.6%68%31 0.32✓ matches cascade
AMD AMDSHORT-0.9% · 5d -0.8%68%35 0.29✓ matches cascade
XCU XCUSHORT-0.6% · 5d -0.6%67%34 0.27✓ matches cascade
NVDA NVDASHORT-3.1% · 5d -5.0%65%34 0.25✓ matches cascade
10y yield DGS10LONG+12bp · 5d +7bp62%39 0.23✓ matches cascade
AUD AUDSHORT-1.1% · 5d -0.3%64%34 0.22✓ matches cascade
CL CLSHORT-2.5% · 5d -1.9%63%34 0.21⚠ differs
KWEB KWEBSHORT-1.5% · 5d -1.0%62%31 0.21✓ matches cascade
SOL SOLLONG+0.4% · 5d -6.8% ↺ fades66%17 0.20⚠ differs
ETH ETHSHORT-2.9% · 5d -4.5%63%27 0.20✓ matches cascade
USDJPY USDJPYLONG+1.4% · 5d +0.3%61%34 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.