Abstract
This research study examines the financial implications of the Russo-Ukrainian war’s impact on the South African financial market, focusing on food and fuel prices, inflation, and interest rates. The Event Study methodology is used to analyse the effects of the conflict using a 120-day estimation window period around the key event. This approach allows to capture both the immediate and sustained impacts of the war on economic indicators. The Event Study approach also allows to isolate the impact of the war by examining abnormal returns in food and fuel prices around key dates of the conflict. The hypotheses suggest that the war has significantly increased food and fuel prices, contributing to higher inflation rates and resulting in elevated interest rates in South Africa. Additionally, the study proposes strategies for stimulating innovation and promoting efficient use of local resources to mitigate these impacts. The findings provide critical insights for policymakers and highlight the need for adaptive economic strategies in response to global conflicts.