Possible scenario
Diplomatic Containment
20% Chance
Regional intermediaries, backed by China, the EU, and Gulf states, press Iran to pause attacks in exchange for limited de-escalatory steps. This is plausible because Tehran may have achieved a coercive signal while still wanting to avoid a direct US-led military campaign.
Initial impacts
- Riskier companies' borrowing costs Down
- Market volatility Down
- 10-year Treasury yield Up
- Oil prices Down
- US dollar Down
Secondary impacts
- Consumer Services +2.0%
Portfolio impact
S&P 500+1.0%
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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