Possible scenario
Direct Military Escalation
20% Chance
A lethal attack or clear attribution to Iranian forces prompts U.S. military action against IRGC naval assets, missile sites or radar facilities. This is less likely than containment, but the frequency of attacks and prior Iranian admissions make escalation risk material.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +5.6%
Portfolio impact
S&P 500-2.6%
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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