Possible scenario
Escalation Hits Shipping
20% Chance
A more severe but less likely outcome is that the blockade expands into a direct maritime security shock. Even without a formal war declaration, a tanker incident or producer export curtailment would push markets toward a Tier 4-style geopolitical repricing.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- Oil prices Up
- 10-year Treasury yield Down
- Copper Down
- US dollar Up
Secondary impacts
- Energy
Portfolio impact
S&P 500-2.1%
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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