Possible scenario
Direct Military Retaliation
30% Chance
Casualties make the incident harder to absorb diplomatically, especially after prior Iranian attacks on tankers and Qatari energy assets. The United States, Qatar, and partners consider or execute limited action against IRGC missile, drone, or radar sites while trying to avoid a full regional war.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +3.5%
Portfolio impact
S&P 500-1.2%
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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