Possible scenario
Direct Military Clash
20% Chance
A near miss against a U.S. or allied warship pushes Washington from defensive escorts to limited strikes or explicit retaliation. This is less likely than a contained standoff, but the repeated tanker incidents and Iranian threats make direct contact increasingly plausible.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +3.8%
Portfolio impact
S&P 500-1.9%
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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