Possible scenario
Renewed Military Escalation
−0.9%
The payment gap proves politically impossible to bridge and both sides return to coercive signaling. Because the Houthis have already demonstrated willingness to strike Riyadh, markets would treat renewed hostilities as a meaningful but still contained Gulf risk event.
What it moves
- Energy+1.5%
- Industrials+1.1%
- Riskier companies' borrowing costs
- Market volatility
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