Possible scenario
Direct Gulf Escalation
18% Chance
The palace threat is followed by a direct or clearly attributable strike against a Gulf monarchy’s symbolic or strategic assets. This is a lower-probability but high-impact path because prior incidents have already normalized attacks on Gulf and Israeli targets.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +4.5%
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.
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