Will the Iran War Cause a Recession?
Current recession probability: 35%. S&P 500 down 4.2%, Dow lost 1,000 points, oil surged 31%. Three scenarios: No recession (55% — quick resolution), Mild recession (30% — sustained $90+ oil), Deep recession (15% — $120+ oil, prolonged Hormuz closure). Historical comparison: 1973 and 1990 oil shocks caused recessions; 2003 Iraq and 2022 Ukraine did not. War costs $891M/day.