How do selected asset classes react to sudden shocks? Evidence from Israel-Hamas conflict using Event Study approach

Sumita Shroff, Nidhi Agrawal, Udai Lal Paliwal and Miklesh Prasad Yadav

Research in International Business and Finance, 2025, vol. 75, issue C

Abstract: Considering the recent Israel-Hamas conflict, we aim to examine its influence on the leading commodities, metals, and global financial markets. Using an event study approach, the reaction of conventional energy – Brent crude, WTI crude, and natural gas; cryptocurrencies - Bitcoin and Ethereum; metals such as gold, platinum, and silver; and the G20 stock markets are analyzed for the event window April 3, 2023, to October 19, 2023. The results demonstrate a short-term impact of this conflict on the selected asset classes. The Argentina, Australia, India, Korea, Mexico, South Africa, and gold stock exchanges show anomalous returns. However, Bitcoin and Ethereum did not react to the conflict. The findings provide valuable insights for investors to be more informed in decision-making, effective risk management, and better understand market dynamics during geopolitical uncertainties.

Keywords: Israel-Hamas conflict; Event study; G-19; Stock markets; Cryptocurrency; Energy markets; Metals (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531924005051

DOI: 10.1016/j.ribaf.2024.102712

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