Possible scenario
Regional Proxy Escalation
18% Chance
A militia attack or attempted attack on remaining U.S. diplomatic, advisory, or Kurdish-region targets triggers a sharper confrontation involving Washington, Baghdad, and Tehran-aligned factions. This is less likely than containment but remains plausible given the post-withdrawal security vacuum and the history of militia strikes on U.S. forces in Iraq and Syria.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +0.9%
- Industrials
Portfolio impact
S&P 500-0.7%
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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