This week's stock market performance began on a troubling note as global investors reacted to the rising oil prices, which spiked to $115 before settling above $100 per barrel. The Tokyo stock market faced extreme volatility, suffering a decline of 7% at the peak of trading before closing down 5.02%. In the backdrop of these developments, the Financial Times reported that G7 nations are preparing to discuss a coordinated release of strategic oil reserves to help mitigate the effects of rising oil prices on the global economy.

Meanwhile, the euro started the week on a weak note, falling against the US dollar by over 0.5% to 1.1559. The British pound also experienced a similar decline against the dollar, which gained strength against the Japanese yen as well. These fluctuations in currency values are attributed to increasing geopolitical tensions, primarily linked to the conflict in Iran. Investors are closely monitoring these developments as they could have broader implications for global trade and economic stability.

Natural gas prices have also surged, reaching their highest levels since 2022 at 64 euros in Amsterdam's TTF market, with April futures contracts seeing a 20% increase at the market's opening. The ongoing volatility in energy markets is raising concerns about inflation and economic growth, prompting G7 ministers to explore options such as the release of strategic oil reserves, which could potentially stabilize prices and alleviate consumer pressures in the immediate term.