Escalation of the feud between the Montagues and Capulets. The fight between Romeo and Tybalt would have further inflamed the already-bitter feud between the Montagues and Capulets. This could have led to increased violence between the two families, resulting in more deaths and destruction.
Juliet's heartbreak. Juliet was deeply in love with Romeo, and if he had been killed in a fight with Tybalt, she would have been devastated. This could have led to Juliet's own death, either through suicide or from a broken heart.
Lord Capulet's wrath. Lord Capulet was a powerful and influential figure in Verona. If his nephew Tybalt had been killed by Romeo, he would have been furious and demanded justice. This could have led to Romeo's arrest or execution, further deepening the rift between the Montagues and Capulets.
Overall, allowing Tybalt to fight Romeo at the party would have had a number of negative consequences, including bloodshed, chaos, and heartbreak. It is clear that Lord Capulet made the right decision in stopping the fight before it could get out of hand.