Possible scenario
Limited Escalation Cycle
20% Chance
The roadside bomb leads to a broader exchange of Israeli strikes and Hezbollah rocket or drone attacks, but both sides still avoid a full war. Northern Israel and south Lebanon face renewed displacement and intermittent disruption, while foreign mediators attempt to cap the fighting.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +0.6%
- Industrials
Portfolio impact
S&P 500-0.5%
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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