Possible scenario
US-Israel Escalation
18% Chance
Washington and Jerusalem conclude that talks are being used to buy time and move toward a coercive military phase. This is less likely than a pause or attrition, but the combination of US surrender demands and ongoing Iranian attacks keeps escalation risk significant.
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 500-2.1%
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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