Possible scenario
Military Escalation
25% Chance
A new tanker incident or failed convoy attempt pushes the confrontation from coercive closure into direct military operations. This scenario produces the largest immediate market stress because traders price both supply loss and retaliation risk against U.S. forces and Gulf infrastructure.
Initial impacts
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Market volatility Up
- Oil prices Up
- Bitcoin Down
- US dollar Up
Secondary impacts
Portfolio impact
S&P 500-4.0%
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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