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Recent Research Reviews Journal

Market Reactions to Geopolitical Events: A Comparative Study of Pre- and Post-Conflict Periods

Open Access
Published: 11 September, 2026
Pages: 280-298
  • Christina Gnanamani , Christina Gnanamani
    Department of Electronics and Telecommunication Engineering, SJUIT, Tanzania
    Department of Electronics and Telecommunication Engineering, SJUIT, Tanzania
  • Muralidharan Kaliyamoorthy Muralidharan Kaliyamoorthy
    Department of Electronics and Communication Engineering, CIT, Coimbatore, India
    Department of Electronics and Communication Engineering, CIT, Coimbatore, India
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How to Cite

Gnanamani, Christina, and Muralidharan Kaliyamoorthy. 2026. “Market Reactions to Geopolitical Events: A Comparative Study of Pre- and Post-Conflict Periods”. Recent Research Reviews Journal 5 (2): 280-98. https://doi.org/10.36548/rrrj.2026.2.003.
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Keywords

Geopolitical Risk
Financial Markets
Stock Market Volatility
Conflict Phases
Investor Behavior
Market Dynamics
Safe-Haven Assets
Economic Uncertainty

Abstract

This present survey considers the impact of geopolitical events on market activity by contrasting the pre-conflict and post-conflict periods. In modern finance, the role of geopolitical events like wars, instability, and sanctions cannot be underestimated, because the modern international financial system is interdependent. Literature proves that the effect of geopolitical risk is regime-dependent and nonlinear, because market behavior changes under different economic conditions. This survey considers the impact of the realization of geopolitical events and the anticipation of geopolitical risk with respect to several transmission channels: uncertainty shock, behavioral, and liquidity. The findings show that the pre-conflict period is characterized by uncertainty and caution, while the post-conflict period is characterized by recovery from policies and adjustment. It should be stressed that the response to geopolitical risk differs geographically and economically. This research is innovative since it presents the theoretical scheme of geopolitical risk dynamics.

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