Impact Assessment of US Tariff Escalation on the International Energy Sectoral Indices

The study attempt to investigate the impact of United States (US) tariff escalation on the global energy stock indices, major focus on 25 energy indices. The findings disclose the presence of significant negative abnormal returns followed by announcement, accentuating heightened investors’ sensitivity towards trade policy shocks. The results provide that the risk associated with the global policy and financial uncertainty exert strong adverse effects. Therefore, in driving the energy market volatility, the critical role is played by the uncertainty that is policy-induced, rather than fundamental price shocks.