Vida Varahrami, Masoome Dadgar


This article reviews the relationship between the oil market and the stock market during the Corona outbreak. The hypothesis of this paper is whether while oil prices shocks happen due to business cycle fluctuations and some other reasons like political reasons occur; the correlations between changes in Brent oil prices and stock market indices tend to be affected by named corona indexes. Forecasting the stock market in each period has been difficult and the value of stock index has been affected by various factors. Among these factors has been the oil and gas sector, especially in countries dependent on the revenue from their sales. This study examines relationship between Brent oil price and Iran stock market Index during the outbreak of corona pandemic. Research method is, vector autoregression model (VAR) which using daily data covering the period from February 20, 2020 to August 21, 2020. The findings of this study suggest that a negative causal effect from Brent oil price changes to the Iran stock market Index. Also, the results of impulse response functions and variance decompositions showed that some corona pandemic indicators have significant effects on the stock index.

Keywords: Corona virus, oil price, stock market index, VAR, Covid-19, Brent oil price, Tehran stock Index, Gold price, Media Hype Index, fake news Index, Media Coverage Index and Panic

JEL Classification: I18, E44, Q4, C5.

Full Text:



Ru, Hong; Yang, Endong; Zou, Kunru;. (2020). Combating the COVID-19 Pandemic: The Role of the SARS Imprint. Retrieved from

Sharif, Arshian; Aloui, Chaker; Yarovaya, Larisa;. (2020, July). COVID-19 Pandemic, Oil Prices, Stock Market, Geopolitical Risk And Policy Uncertainty Nexus In The US Economy: Fresh Evidence From The Wavelet-Based Approach. 70:101496. Doi:Https://Doi.Org/10.1016/J.Irfa.2020.101496

Goodell, John W.;. (2020). COVID-19 And Finance: Agendas For Future Research. Finance Research Letters, 35:101512.


Nicola, Maria; Alsafi, Zaid; Sohrabi, Catrin; Kerwan, Ahmed; Al-Jabir, Ahmed; Iosifidis, Christos; Agha, Maliha; Agha, Riaz;. (2020, June). The Socio-Economic Implications Of The Coronavirus Pandemic (COVID-19): A Review. International Journal Of Surgery, 78, 185-193. Doi:10.1016/J.Ijsu.2020.04.018

Bolton, Patrick; Despres, Morgan; Silva, Luiz Awazu Pereira DA; SAMAMA, Frédéric; SVARTZMAN, Romain;. (2020). The Green Swan: Central Banking And Financial Stability In The Age Of Climate Change.

Zhang, Guofu; Liu, Wei;. (2018, December 15). Analysis Of The International Propagation Of Contagion Between Oil And Stock Markets. Energy, 165, Part A, 469-486. Doi:10.1016/J.Energy.2018.09.024

Nadal, Raquel; Szklo, Alexandre; Lucena, Andr´E;. (2017, December). Time-Varying Impacts Of Demand And Supply Oil Shocks On Correlations Between Crude Oil Prices And Stock Markets Indices. Research In International Business And Finance, 42, 1011-1020. Doi:Http://Dx.Doi.Org/Doi:10.1016/J.Ribaf.2017.07.037

Ferreira, Paulo; Pereira, Éder Johson De Area Leão; Fernandes, Marcus; Pereira, Hernane Borges;. (2018, March 1). Detrended Correlation Coefficients Between Oil And Stock Markets: The Effect Of The 2008 Crisis. Physica A, 517, 86-96. Doi:Https://Doi.Org/10.1016/J.Physa.2018.11.021

Jammazi, Rania; Ferrer, Román; Jareño, Francisco; Shahzad, Syed Jawad Hussain;. (2017, May). Time-Varying Causality Between Crude Oil And Stock Markets: What Can We Learn From A Multiscale Perspective? International Review Of Economics And Finance, 49, 453-483. Doi:Http://Dx.Doi.Org/10.1016/J.Iref.2017.03.007

Xu, Weiju; Ma, Feng; Chen, Wang; Zhang, Bing;. (2018, May). Asymmetric Volatility Spillovers Between Oil And Stock Markets: Evidence From China And The United States. Energy Economics, 80, 310-320.

Doi: https://Doi.Org/10.1016/J.Eneco.2019.01.014

Bahmani-Oskooee, Mohsen; Ghodsi, Seyed Hesam; Hadzic, Muris;. (2019, September). Asymmetric Causality Between Oil Price And Stock Returns: A Sectoral Analysis. Economic Analysis And Policy, 63, 165-174.

Doi: https://Doi.Org/10.1016/J.Eap.2019.06.002

Delpachitra, Sarath; Hou, Keqiang; Cottrell, Simon;. (2020, September). The Impact Of Oil Price Shocks In The Canadian Economy: A Structural Investigation On An Oil-Exporting Economy. Energy Economics, 91:104846.

Doi: https://Doi.Org/10.1016/J.Eneco.2020.104846

Köse, Nezir; Ünal, Emre;. (2020, January 1). The Impact Of Oil Price Shocks On Stock Exchanges In Caspian Basin Countries. Energy, 190:116383. Doi:Https://Doi.Org/10.1016/J.Energy.2019.116383

Bakas, Dimitrios; Triantafyllou, Athanasios;. (2020, August). Commodity Price Volatility And The Economic Uncertainty Of Pandemics. Economics Letters, 193:109283. Doi:Http://Dx.Doi.Org/10.2139/Ssrn.3581193

Mokni, Khaled;. (2020, November). Time-Varying Effect Of Oil Price Shocks On The Stock Market Returns:Evidence From Oil-Importing And Oil-Exporting Countries. Energy Reports, 6, 605-619. Doi: https://Doi.Org/10.1016/J.Egyr.2020.03.002

Engelhardt, Nils; Krause, Miguel; Neukirchen, Daniel;. (2020). What Drives Stocks During The Corona-Crash? News Attention Vs. Rational Expectation. Sustainability, 12(12). Doi: https://Doi.Org/10.3390/Su12125014

Basher, Syed Abul; Haug, Alfred A.; Sadorsky, Perry;. (2018, September). The Impact Of Oil-Market Shocks On Stock Returns In Major Oil-Exporting Countries. Journal Of International Money And Finance, 86, 264-280.


Salisu, Afees A.; Ebuh, Godday U.; Usman, Nuruddeen;. (2020, September). Revisiting Oil-Stock Nexus During COVID-19 Pandemic: Some Preliminary Results. International Review Of Economics And Finance, 69, 280-294.


Azimli, Asil;. (2020, October). The Impact Of COVID-19 On The Degree Of Dependence And Structure Of Risk-Return Relationship: A Quantile Regression Approach. Finance Research Letters, 36:101648.


Lyócsa, Štefan; Molnár, Peter;. (2020, October). Stock Market Oscillations During The Corona Crash: The Role Of Fear And Uncertainty. Finance Research Letters, 36:101707. Doi: https://Doi.Org/10.1016/J.Frl.2020.101707

Al-Awadhi, Abdullah M.; Alsaifi, Khaled; Al-Awadhi, Ahmad; Alhammadi, Salah;. (2020, September). Death And Contagious Infectious Diseases: Impact Of The COVID-19 Virus On Stock Market Returns. Journal Of Behavioral And Experimental Finance, 27:100326. Doi: https://Doi.Org/10.1016/J.Jbef.2020.100326

He, Pinglin; Sun, Yulong; Zhang, Ying; Li, Tao;. (2020, July). COVID–19’s Impact On Stock Prices Across Different Sectors—An Event Study Based On The Chinese Stock Market. Emerging Markets Finance And Trade, 56(10), 2198-2212. Doi:Https://Doi.Org/10.1080/1540496X.2020.1785865

Ashraf, Badar Nadeem;. (2020, December). Stock Markets’ Reaction To COVID-19: Cases Or Fatalities? Research In International Business And Finance, 54:101249. Doi:Https://Doi.Org/10.1016/J.Ribaf.2020.101249

Liu, Lu; Wang, En-Ze; Lee, Chien-Chiang;. (2020, July). Impact Of The COVID-19 Pandemic On The Crude Oil And Stock Markets In The US: A Time-Varying Analysis. Energy Research Letters, 70:101496. Doi:10.46557/001c.13154

Topcu, Mert; Gulal, Omer Serkan;. (2020, October). The Impact Of COVID-19 On Emerging Stock Markets. Finance Research Letters, 36:101691.


Khanthavit, Anya;. (2020). World And National Stock Market Reactions To COVID-19. Doi:10.13140/RG. 2.2.22792.57606

Hanke, Michael; Kosolapova, Maria; Weissensteiner, Alex;. (2020, October). COVID-19 And Market Expectations: Evidence From Option-Implied Densities. Economics Letters, 195:109441. Doi:Https://Doi.Org/10.1016/J.Econlet.2020.109441

Ali, Mohsin; Alam, Nafis; Rizvi, Syed Aun R.;. (2020, September). Coronavirus (COVID-19)—An Epidemic Or Pandemic For Financial Markets. Journal Of Behavioral And Experimental Finance, 27:100341.


Qin, Meng; Zhang, Yu-Chen; Su, Chi-Wei;. (2020).The Essential Role Of Pandemics: A Fresh Insight Into The Oil Market. Energy RESEARCH LETTERS, 1(1). Doi:Https://Doi.Org/10.46557/001c.13166

Liu, Haiyue; Manzoor, Aqsa; Wang, Cangyu; Zhang, Lei; Manzoor, Zaira;. (N.D.). The COVID-19 Outbreak And Affected Countries Stock Markets Response. International Journal Of Environmental Research And Public Health, 17(8).


Atri, Hanen; Kouki, Saoussen; Gallali, Mohamed imen;.(2021).The impact of COVID-19 news, panic and media coverage on the oil and gold prices: An ARDL approach. Resources Policy, 72. Doi:

Cepoi, Cosmin-Octavian;. (2020, October). Asymmetric Dependence Between Stock Market Returns And News During COVID-19 Financial Turmoil. Finance Research Letters, 36:101658. Doi:Https://Doi.Org/10.1016/J.Frl.2020.101658

Kocaarslan, Baris; Soytas, Ugur;. (2019, November). Asymmetric Pass-Through Between Oil Prices And The Stock Prices Of Clean Energy Firms: New Evidence From A Nonlinear Analysis. Energy Reports, 5, 117-125.


Mensi, Walid; Hkiri, Besma; Al-Yahyaee, Khamis H.; Kang, Sang Hoon;. (2017, March). Analyzing Time–Frequency Co-Movements Across Gold And Oil Prices With BRICS Stock Markets: A Var Based On Wavelet Approach. International Review Of Economics And Finance, 54, 74-102. Doi:10.1016/J.Iref.2017.07.032

Capelle-Blancard, Gunther; Desroziers, Adrien;. (2020). The Stock Market And The Economy: Insights From The COVID-19 Crisis. Social Science Research Network.


  • There are currently no refbacks.

International Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License Based on a work at

Copyright © 2016-2022 International Journal of Business and Economics (IJBE)

ISSN (online) 2545-4137

Disclaimer: Articles on International Journal of Business and Economics (IJBE) have been previewed and authenticated by the Authors before sending for the publication. The Journal, Chief Editor and the editorial board are not entitled or liable to either justify or responsible for inaccurate and misleading data if any. It is the sole responsibility of the Author concerned.