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When War Breaks Out, Markets Panic: How Quickly Do Stock Markets Recover? Lessons for Indian Investors Trending

14 Mar 202612 min read
Dr. Risha Khandelwal
Dr. Risha Khandelwal
Financial Economist (PhD - Finance)
When War Breaks Out, Markets Panic: How Quickly Do Stock Markets Recover?     Lessons for Indian Investors
Key Market Insights
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Markets panic first, recover later

Markets usually fall briefly when wars begin but stabilize within 2–4 weeks as uncertainty eases.

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Oil reacts the most to geopolitical shocks

Oil surged 33% during the Russia–Ukraine war and nearly 47% during the Iran–Israel escalation.

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Gold acts as a safe haven

Gold typically rises around 3–7% during geopolitical crises as investors move toward safer assets.

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