Possible scenario
Naval Protection Response
20% Chance
Washington, London, and Baghdad respond by expanding patrols and convoy-style monitoring around Iraq's maritime export routes. This scenario contains both a stabilizing branch, where deterrence reassures markets, and a higher-risk branch, where interception of Iranian-linked assets creates a short-lived escalation premium.
Initial impacts
- Market volatility Down
- Riskier companies' borrowing costs Down
- 10-year Treasury yield Up
- Oil prices Up
Secondary impacts
- Industrials +0.4%
- Energy +0.2%
Portfolio impact
S&P 500+0.2%
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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