Possible scenario
Escalatory Strike Cycle
25% Chance
A higher-risk but plausible scenario is that the warning is followed by additional missile or drone attacks, prompting Saudi military responses. This would shift the story from aviation disruption to a material geopolitical escalation affecting oil, defense, travel and risk sentiment.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Consumer Services -2.2%
Portfolio impact
S&P 500-1.1%
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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