Possible scenario
Diplomatic De-escalation
20% Chance
Oman, the UN, and possibly the United States push both sides toward a temporary halt after the Riyadh strike shows the risks of direct attacks on Saudi energy infrastructure. This scenario is plausible because both sides have previously accepted pauses, but Saudi Arabia’s recent refusal of a Houthi truce limits the odds of an immediate durable settlement.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- Oil prices Down
- 10-year Treasury yield Up
Secondary impacts
- Energy -1.4%
- Consumer Services +1.4%
Portfolio impact
S&P 500+1.0%
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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