Abstract
Economic sanctions engender the disturbance of financial transactions between the sanctioner and the targeted nations. The Russia-Ukraine war also restricted Russia's entry into financial and commodity markets, with reverberating effects on the global market. Hence, the study aims to elucidate the relationship between armed conflicts and economic sanctions enforced by the G7 nations, the crude oil market, and its corresponding volatility index, OVX. It seems that heightened levels of ambiguity, conflict, nervousness, and hostility have contributed to an increase in the fluctuation of the energy market, leading to an extreme response to economic sanctions. Our findings reveal that financial restrictions imposed by Australia, Japan, the UK, and the USA have led to higher uncertainty and increased volatility in the oil market. The news variable War exhibits higher volatility compared to Crude oil and Recession in the media press. The war-induced uncertainty has shown a significant impact on the oil volatility.
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Recommended Citation
Shaikh, Imlak; Kaushal, Leena Ajit; and Vallabh, Priyanka
(2025)
"The Impact of Economic Sanctions and War-Related Uncertainty on Oil Market Volatility: Evidence from the Russia-Ukraine War,"
American Business Review: Vol. 28:
No.
2, Article 3.
DOI: 10.37625/abr.28.2.361-388
Available at:
https://digitalcommons.newhaven.edu/americanbusinessreview/vol28/iss2/3
DOI
10.37625/abr.28.2.361-388
