🚨 US recession probability is close to 50% according to Moody’s, and could cross that threshold if oil prices remain elevated.
@Polymarket odds tell a different story, with only a ~31% chance of a recession this year.
Since the Iran war began in late February, oil has surged sharply, briefly approaching $100–$120 per barrel depending on the benchmark.
Historically, nearly every US recession since World War II, except COVID, has been preceded by a spike in oil prices
🚨BREAKING: US recession probability is about to cross 50%.
Since the Iran War began, oil has surged ~60% from $70 to nearly $120 a barrel in under 3 weeks.
Moody's expects the next update to push recession odds past 50%, a level not seen outside an active recession.
That's a +15 point surge in just 6 months.
The chart below tells you everything you need to know.
Every single recession since WW2, except COVID, was preceded by an oil spike.
History is rhyming.