Possible scenario
Military Escalation
25% Chance
A confirmed attack on an escorted ship or naval asset pushes Washington and London into direct strikes on Iranian launch sites or command nodes. This is less likely than continued disruption but plausible given the rising attack count, falling transparency and collapsing commercial traffic.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +6.2%
Portfolio impact
S&P 500-3.5%
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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