Possible scenario
Hormuz Risk Escalates
20% Chance
Iranian-aligned actors broaden pressure beyond Yemen, raising risks around tanker traffic and Gulf export routes. This is less likely than a contained Saudi-Houthi cycle but has the largest immediate market impact because roughly a fifth of global oil consumption moves through the Strait of Hormuz.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- Bitcoin Down
- US dollar Up
Secondary impacts
- Energy
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.
Keeping an eye on this scenario?
Tilt can alert you when its probability or impact shifts, or send you a recommendation when it crosses a threshold.