Possible scenario
Direct Strike Escalation
30% Chance
The administration treats the higher death count as evidence that deterrence has failed and broadens target sets to include Iranian military assets. Tehran responds with missile, drone, or naval actions, but both sides still try to avoid all-out 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 +3.0%
- Technology
Portfolio impact
S&P 500-1.4%
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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