Possible scenario
Retaliation Cycle Escalates
25% Chance
Iran acts on its mapped retaliation options, either through proxies or direct strikes, while China’s condemnation hardens diplomatic lines. This is less likely than rhetorical containment but remains plausible given the September destruction of Iranian nuclear sites and Tehran’s public targeting work.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +4.1%
Portfolio impact
S&P 500-1.7%
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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