US markets experienced sharp volatility while Brent crude traded near $90, with S&P 500 futures fluctuating between gains and losses and Oracle standing out with a 10% premarket rise. Tensions in the Persian Gulf and Strait of Hormuz, including attacks on ships and threats from Iran, have pressured oil supply, and the International Energy Agency proposed releasing 400 million barrels of emergency oil. Investors are concerned about rising inflation and aggressive central bank responses, while JPMorgan has marked down loan values and imposed credit limits. February US inflation data will be closely watched on Wednesday to gauge the Federal Reserve's monetary policy path and pressure on risk assets.

Trump announced that the US is regaining real energy dominance with the opening of the first new oil refinery in 50 years in Brownsville, Texas. This $300 billion project, in partnership with the Indian company Reliance, will supply domestic markets, strengthen national security and US energy production, and create thousands of jobs. Trump described it as a major economic

G7 energy ministers announced support for using strategic reserves to address oil supply disruptions and market volatility after the Iran war began. In a virtual meeting with the IEA, they reviewed the impact of the Iran conflict on energy markets and supply, emphasized coordination with IEA members and international partners, and welcomed proactive measures including tapping strategic reserves.

European Central Bank policymakers, including Peter Kazimir, Christine Lagarde, and Villeroy, emphasized high inflation risks and the potential impact of conflicts such as the Iran war. Despite Kazimir's warning about a possible rate hike, most members stressed caution and patience. They believe negative oil supply shocks slow economic growth and raise inflation, and an early rate hike could trigger a recession. Markets expect about 33 basis points of rate increases by year-end, with a 60% probability of a hike in June, though no short-term decision has been announced.