Mohammad Enamul Hoque, Asma Houcine, Mabruk Billah, Muhammad Abubakr Naeem
We employed the novel R2 decomposed connectedness approach to analyze the interplay among oil market shocks, geopolitical risk, global economic conditions, and EURO financial stress. Our findings demonstrate significant interconnectedness, characterized by moderate contemporaneous and lagged spillover effects. Our findings exhibit that geopolitical risk threats propagate shocks to countries such as Austria, Denmark, Finland, France, Germany, Netherlands, Spain, Sweden, and the UK. In contrast, global economic conditions and other factors serve as recipients of those shocks. Furthermore, our time-varying measures unveil fluctuations in interconnectedness during pivotal events such as wars, financial crises, and shifts in OPEC policies. Copyright © 2026. Published by Elsevier Inc.
BRAC Business School, BRAC University, 66 Mohakhali, Dhaka, 1212, Bangladesh; Faculty of Economics and Business, Universitas Negeri Padang, Padang, Indonesia; Excelia Business School, CERIIM, Paris, France; GEF2A-Lab, Higher Institute of Management of Tunis (ISGT), University of Tunis, Tunis, Tunisia; Department of Accounting and Finance, College of Business Administration, Prince Mohammad Bin Fahd University, Al Khobar, Saudi Arabia; Economics and Finance Department, College of Business and Economics, United Arab Emirates University, PO Box 15551, Al Ain, United Arab Emirates
