Possible scenario
Regional Spillover Risk
22% Chance
Hamas, Palestinian Islamic Jihad or Hezbollah use the Al-Aqsa incident to justify rocket fire or border pressure. A full regional war remains less likely than contained unrest, but the religious-site trigger increases the chance of actors outside the West Bank entering the confrontation.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Consumer Services -1.1%
Portfolio impact
S&P 500-0.7%
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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