Possible scenario
Black Sea Escalation
20% Chance
The breakdown in ceasefire expectations could be followed by a more aggressive Russian effort to raise the cost of Ukraine’s export corridor. This remains less likely than the corridor muddling through, but the tail risk is material because ports, drones and commercial shipping are all exposed.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- Oil prices Up
- 10-year Treasury yield Down
- US dollar Up
Secondary impacts
- Consumer Non-Cyclicals -1.1%
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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