Israel’s attacks on Iran’s nuclear facilities risk pushing back the timeline for Federal Reserve interest-rate cuts as the US central bank waits to assess any potential impact on inflation, economists said.

The S&P 500 could sink as much as 20% if conflict between Israel and Iran escalates or is dragged out a lot longer, RBC said in a note.

The main macro threat from fighting between Israel and Iran is a run-up in energy prices that persists and drives headline inflation higher.