NEW YORK, Aug. 19, 2026 /PRNewswire/ — Egan-Jones released an analysis examining how the Iran war might end and what each outcome would mean for oil, rates, and portfolio risk, finding that none of the campaign’s four objectives has been fully achieved in its fifth month.

The declared aims were regime change, an end to uranium enrichment, the destruction of Iran’s ballistic missile capacity, and reduced funding of regional proxies. In their place, Egan-Jones counts lost control of the Strait of Hormuz, rising threats to the Bab el-Mandeb Strait, destroyed American bases, and damaged regional alliances.

Two constraints frame the assessment. The Strategic Petroleum Reserve, near 415 million barrels when the war began, stood at 307.7 million in the week ending July 24, the lowest in more than forty-three years, while the Government Accountability Office reported in May that more than a quarter of what remains cannot be drawn. Public support is thin, with 28 percent of Americans calling the war worth fighting.

Five exits are set out, each with a read for investors. A long tail ending in de facto settlement is judged the strongest possibility, one that would lift war-risk insurance and prove constructive for the energy complex. Withdrawal under political pressure and a durable agreement are each rated moderate, the agreement case identified as the disinflationary path and the sharpest reversal risk for anyone still carrying the war premium. An indiscriminate air campaign is rated low and a strategic nuclear exchange remote.

Markets have already repriced. Contract prices on the Kalshi event exchange put the chance of a Federal Reserve increase in 2026 at 63 percent on August 6, against 13 percent before the campaign opened. Egan-Jones observes that this year’s inflation impulse sits entirely in the energy component, making the price level a function of one waterway.

Egan-Jones also argues that the forward-basing model that carried American power through the second half of the twentieth century is being retired, noting that at least eleven American installations in the region were struck this year. The firm offers the scenarios as a framework for institutional investors weighing where a war without a decisive victory leaves energy prices and credit.

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SOURCE Egan-Jones Ratings Co.