Possible scenario
Regional Escalation
23% Chance
A less likely but high-impact path is that Iran or aligned militias respond to the longer U.S. war plan by widening pressure across the Gulf, Iraq, Syria, or the Red Sea. This would turn a munitions-capacity story into a broader supply-security and energy-risk event.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +3.0%
Portfolio impact
S&P 500-1.1%
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.