Iran’s threat to close the Strait of Hormuz long-term has rattled markets. The chance of a US-Iran ceasefire by April 7 sits at 1.9% YES, down from 8% yesterday.
Traders have reacted to Iran’s aggressive stance and the US’s economic moves with skepticism about an imminent ceasefire. The April 7 ceasefire market dropped sharply, with only 5 days left for resolution. The April 15 market is also down, now at 8.5% YES from 20% a day ago, while the April 30 market shows a 24.5% chance, down from 40%. The biggest term structure jump is between April 30 and May 31, indicating a potential catalyst in May.
Ceasefire markets are seeing heavy trading, with volume at $661,902 in USDC across active sub-markets in the last 24 hours. The April 7 market’s depth indicates it takes $26,062 to shift the price by 5 points, suggesting some stability despite volatility. The largest single move was a 4-point drop in the May 31 market, hinting at traders’ wariness over Iran’s threats.
Iran’s closure threat is a strategic escalation amid stalled negotiations. Traders see this as a genuine shift rather than noise. At 2¢, a YES share on an April 7 ceasefire pays $1 if resolved — a 50x return. This bet implies believing in a rapid diplomatic breakthrough within 5 days, which seems unlikely given current tensions.
Watch for statements from CENTCOM, new sanctions, or any signaling from Qatar or Oman as intermediaries. A shift in language or any direct talks announcement could move these markets significantly.
Markets Impacted
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