📈 Markets & Finance risk-off · 1–3 years
A what‑if from the future

What if Stagflationary supply shock 2.0: a new chokepoint reprises 1973?

A fresh commodity or shipping chokepoint reprises a 1973-style supply shock, simultaneously raising prices and cutting output in a classic stagflation.

10%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 10% · 90% range 3–18% · 40 analogues · measured class recession 100% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — recession ≈1.9335/yr → 100% in 3 yr100%
Analyst prior · editorial share 10% of the class10%
Pooled · weight 87%10%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)10%
Published10%

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 fresh commodity or shipping chokepoint reprises a 1973-style supply shock, simultaneously raising prices and cutting output in a classic stagflation. The trigger decomposes into signed root‑shocks — Gold ▲ · Inflation surprise ▲ · Oil supply risk ▲ · Recession signal ▲ · 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▲ +3.0%
hist -0.91–+1.81% · other way -3.86% (n=12)
2WTI crude CLon Hyperliquid 📈 chartCommodity▲ +2.4%
hist -4.46–+1.52% · other way -3.53% (n=12)
3MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.8%
hist -2.55–+2.6% · other way +30.65% (n=12)
4Energy sector XLEon Hyperliquid 📈 chartEquity▲ +1.7%
hist -0.74–+0.89% · other way -1.0% (n=12)
5Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.3%
hist -0.91–-0.31% · other way -0.58% (n=12)
6Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.3%
hist -1.5–+1.23% · other way -2.2% (n=12)
7Tech sector XLK 📈 chartEquity▼ -1.2%
hist -0.76–-0.05% · other way -0.48% (n=12)
8Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.1%
model prior · unmeasured
9Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -1.1%
hist -4.8–+1.33% · other way +8.33% (n=12)
10United Airlines UAL 📈 chartEquity▼ -1.4%
hist -3.13–+6.27% · other way +8.76% (n=12)
11ExxonMobil XOM 📈 chartEquity▲ +1.2%
hist +0.25–+1.12% · other way -1.61% (n=12)
12Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.9%
hist -4.63–+1.09% · other way +4.74% (n=12)
13Chevron CVX 📈 chartEquity▲ +1.1%
hist +0.38–+0.68% · other way +0.36% (n=12)
14Delta DAL 📈 chartEquity▼ -1.2%
hist -1.73–+4.1% · other way +4.3% (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 -1.2% · United Airlines -1.4% · ExxonMobil +1.2% · Chevron +1.1% · Delta -1.2% · 30y Treasury yield +8bp

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 Saudi-Russia oil price war 2020-03 OPEC abandons output defense, opting for market share vs US shale 2014-11 1990-91 recession onset 1990-07 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 1973-75 recession onset 1973-11 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 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 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 China-led global 'Black Monday' rout 2015-08 Libya civil war halts output and lifts Brent above $100 2011-02 Egyptian revolution / Mubarak uprising 2011-01 Greek sovereign debt crisis / first EU-IMF bailout 2010-05 ECB's ill-timed pre-crisis rate hike 2008-07 2006 Lebanon War oil spike 2006-07 Iraq invasion 2003 relief rally 2003-03 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 OPEC and non-OPEC Vienna pact ends the 1998 price war 1999-03
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
HOOD HOODLONG+7.7% · 5d +0.5%75%15 0.46⚠ differs
COIN COINLONG+11.9% · 5d +3.5%75%15 0.45⚠ differs
CL CLSHORT-4.5% · 5d -2.7%71%32 0.37⚠ differs
AMD AMDSHORT-2.6% · 5d -0.8%71%35 0.33✓ matches cascade
XLE XLESHORT-1.3% · 5d -1.3%64%33 0.27⚠ differs
AUD AUDSHORT-1.1% · 5d -0.3%66%30 0.25✓ matches cascade
DAL DALLONG+4.2% · 5d -0.2% ↺ fades63%29 0.24⚠ differs
MRVL MRVLSHORT-0.9% · 5d -3.0%65%32 0.22✓ matches cascade
BRENT BRENTSHORT-2.0% · 5d -0.9%61%29 0.20⚠ differs
SOL SOLLONG+1.9% · 5d -5.3% ↺ fades66%15 0.20⚠ differs
GBPUSD GBPUSDSHORT-0.6% · 5d -0.3%62%30 0.20✓ matches cascade
NDX NDXSHORT-0.2% · 5d -0.8%62%35 0.19✓ matches cascade
NVDA NVDASHORT-2.9% · 5d -5.4%61%33 0.19✓ matches cascade
JPM JPMLONG+1.5% · 5d -0.1% ↺ fades62%35 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.