Possible scenario
Contained Iranian Retaliation
25% Chance
Iran follows through on its threat after a U.S. heavy strike, but the retaliation is calibrated below all-out war. Missile, drone, cyber, or proxy attacks hit U.S. bases and Gulf-linked targets, forcing air defense operations and temporary aviation or energy precautions.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Energy +5.0%
Portfolio impact
S&P 500-2.3%
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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