Possible scenario
Saudi Retaliation Expands
25% Chance
Riyadh responds with limited airstrikes on Houthi missile and drone infrastructure in Yemen, possibly with U.S. intelligence support. The escalation remains below direct Saudi-Iran confrontation but raises near-term oil and shipping risk.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +2.2%
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.
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