Possible scenario
Gulf Energy Escalation
20% Chance
Rather than prioritizing political targets, Tehran uses the threat environment to pressure Washington through the Strait of Hormuz, tanker routes, and Gulf energy infrastructure. This path has the clearest immediate macro impact because oil supply risk transmits quickly to inflation, rates, and equities.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- Oil prices Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Energy +3.5%
Portfolio impact
S&P 500-2.0%
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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