Possible scenario
Direct Military Escalation
20% Chance
The rejection is followed by a kinetic incident involving tankers, drones or U.S. escorts. Both governments still have incentives to avoid all-out war, but retaliation risks a sharp one- to two-day repricing across oil, credit and defense assets.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- Bitcoin Down
- US dollar Up
Secondary impacts
- Energy
Portfolio impact
S&P 500-2.4%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
Keeping an eye on this scenario?
Tilt can alert you when its probability or impact shifts, or send you a recommendation when it crosses a threshold.