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Middle East conflict and energy companies: The effect of air and drone strikes on global energy stocks

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  • Abedin, Mohammad Zoynul
  • Goldstein, Michael A.
  • Malhotra, Nidhi
  • Yadav, Miklesh Prasad

Abstract

The recent April 2024 Israel-Iran conflict had a notable impact on global energy markets. Returns on the top ten global energy stocks indicate investor apprehension up to 10 days before the event started on April 13, 2024. Energy stocks had significant negative returns on the event day itself, with positive CAARs pre-event and negative CAARs post-event. The dynamic market response highlights the heightened uncertainty for energy firms due to regional instability and potential supply chain interruptions, emphasizing the critical role of geopolitical events in shaping investor sentiment and the financial performance of energy firms.

Suggested Citation

  • Abedin, Mohammad Zoynul & Goldstein, Michael A. & Malhotra, Nidhi & Yadav, Miklesh Prasad, 2024. "Middle East conflict and energy companies: The effect of air and drone strikes on global energy stocks," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324010390
    DOI: 10.1016/j.frl.2024.106009
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