Possible scenario
Gulf Escalation
20% Chance
The crisis widens beyond tanker harassment into direct attacks on energy infrastructure or military assets. This lower-probability path would produce the largest immediate market shock because Saudi spare capacity is the key buffer against the Hormuz blockade.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- Oil prices Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Energy +3.4%
Portfolio impact
S&P 500-2.6%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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