Possible scenario
Direct U.S.-Iran Clash
27% Chance
The sovereignty language hardens U.S. red lines and makes retaliation more likely after the prior tanker attacks. A direct exchange between U.S. forces and Iranian military assets becomes a material risk, especially if Iran fires on U.S. ships or attempts to mine the channel.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +9.6%
Portfolio impact
S&P 500-4.5%
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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