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Case 01 · Strait of Hormuz

The deadline the market could not meet.

Market · Polymarket

Will Strait of Hormuz traffic return to normal by end of May?

Mines, insurance, ships, and routing all had to reset faster than the physical timeline allowed. Q’s fair price was 3¢. Polymarket priced YES at 68¢.

The call
Market priced
68%
Q forecast
3%
Q took the side
NO
The edge
The physical reopening path could not clear before the deadline.
Total return if held to resolution
+212.3%
First 7 days
+95.3%
$1,000 at signal
$3,123

Assuming entry at the signal price (32¢ NO), a $1,000 NO position would have settled at about $3,123, before fees, slippage, or liquidity constraints.

How the call developed

Probability the Strait recovers by May 31, %

The market opened far above Q. After the signal it fell toward the call, and stayed there.

Q’s forecastBefore signalPolymarket price
050100Q’s call heldQ123Q begins watchingApr 2Signal publishedApr 20Last Q updateMay 6Resolved NOMay 310255075100Q’s call heldQ123Apr 2Apr 20May 31

Tap a numbered point to read its source.

What Q saw

Q saw a calendar problem. Recovery required the seven-day transit average to reach 60. At the signal, it was near 4.5. Insurance costs were still about five times normal, the US Navy’s mine-clearance effort was unfinished, and fleets diverted around the Cape of Good Hope needed time to return. Those steps had to happen in sequence before May 31.

How Q tested it

Q tracked the conditions that would have made a fast recovery possible. None moved quickly enough before the deadline.

Risk normalized before early MayNot observed

Carriers could return quickly if insurance and official-risk signals improved.

Major state-backed lines returned anywayNot observed

Recovery could happen despite cost and danger if large fleets ignored the risk.

Traffic recoveredDid not happen fast enough

The market needed transit counts to move toward the 60-a-day threshold.

Sources reviewed

Reviewed 268 distinct sources across 99 domains.

Includes maritime intelligence, carrier advisories, wire coverage, and market sources.

WindwardLloyd’s ListIMF PortWatchS&P GlobalReutersNPRCNBCWaPoAxiosMaerskMSCHapag-Lloyd
Signal record

Published April 20, 2026. The forecast, evidence, and outcome are preserved in this case study.

Quotient Signals is research and information, not financial advice. Markets involve risk, and past performance does not guarantee future results.