Possible scenario
Contained Maritime Escalation
38% Chance
Iran continues coercive pressure in the Strait of Hormuz, but the U.S., U.K., and Gulf partners keep lanes technically open through escorts and surveillance. This is the most likely path because the attacks have been repeated but still calibrated below a full closure of the strait.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +1.6%
- Industrials
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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