Resolution criteria

This market will resolve to "Yes" if, before January 1, 2030, there is credible reporting from reputable news organizations confirming that Iran has successfully sunk a U.S. Navy ship with a displacement of more than 2000 tons. The term "sunk" is defined as causing a U.S. Navy vessel to become submerged and inoperable due to hostile actions attributed to Iran. This includes submarines that are sunk. If no such incident is reported by the specified date, the market will resolve to "No."

Background

Iran has developed a range of naval capabilities aimed at countering U.S. naval presence in the Persian Gulf and surrounding waters. These include:

• Anti-Ship Missiles: Iran has test-fired advanced anti-ship cruise missiles, such as the Ghadr-380, with ranges exceeding 1,000 kilometers, capable of targeting U.S. Navy ships in the Persian Gulf and the Sea of Oman. (apnews.com)

• Submarine Fleet: The Iranian Navy operates a fleet of submarines, including the Ghadir-class, designed for operations in the shallow waters of the Persian Gulf. These submarines are equipped with torpedoes and are considered a potential threat to surface vessels. (en.wikipedia.org)

• Swarm Tactics: Iran's Revolutionary Guard Corps Navy employs small, fast attack craft capable of executing swarm tactics to overwhelm larger naval vessels. These tactics have been demonstrated in various naval exercises and incidents. (en.wikipedia.org)

Historically, there have been several encounters between Iranian and U.S. naval forces, including:

• 2008 Incident: Iranian speedboats approached U.S. Navy warships in the Strait of Hormuz, leading to a tense standoff. (en.wikipedia.org)

• 2016 Detention: Two U.S. Navy boats were seized by Iran's Revolutionary Guard Corps after entering Iranian territorial waters near Farsi Island. The sailors were released after 15 hours. (en.wikipedia.org)

• 2021 Encounter: A U.S. Navy patrol boat fired warning shots when vessels of Iran’s Revolutionary Guard came too close during a patrol in the Persian Gulf. (apnews.com)

Considerations

While Iran possesses capabilities that could threaten U.S. naval assets, successfully sinking a U.S. Navy ship would likely provoke significant military retaliation and escalate regional tensions. The U.S. Navy employs advanced defensive systems and maintains a robust presence in the region to deter and respond to such threats. Traders should consider the balance between Iran's capabilities and the potential consequences of such an action when making predictions.