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Recession Odds Climb as Oil Spikes Past $100 in Iran War Fallout

Betting markets now price a sharper downturn following an energy shock.

Overview

  • U.S. crude briefly surged near $115 before easing toward $100, and the national average for gasoline reached $3.478 per gallon after Iran curtailed traffic through the Strait of Hormuz.
  • Kalshi’s market put 2026 recession odds at 33% on Monday from 22% a week earlier, while Polymarket sat near 30% after a Sunday night spike to 43%.
  • February payrolls declined by roughly 92,000 with earlier months revised lower, and stocks in the U.S., Europe and Asia fell as investors reassessed growth and inflation risks.
  • The White House said short‑term disruptions are expected and insisted the economy remains on track, as President Trump called higher oil a “very small price to pay” to eliminate Iran’s nuclear threat.
  • Policy pressure intensified with Democrats urging a Strategic Petroleum Reserve release and criticism mounting over a Treasury waiver allowing India to buy Russian oil until April 4.