Possible scenario
Limited Retaliation
31% Chance
Iran or aligned groups retaliate in a calibrated way against U.S. military assets, seeking to demonstrate credibility without triggering an uncontrollable war. The key variable is whether U.S. personnel are killed, which would sharply raise the odds of further American strikes.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +4.0%
Portfolio impact
S&P 500-1.7%
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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