Global financial markets experienced volatility Thursday as Brent crude oil prices reached four-year highs, putting pressure on central banks and causing declines across Asian equity markets. The surge in energy costs has created new challenges for monetary policymakers already grappling with inflation concerns.

The European Central Bank and Bank of England were expected to maintain current interest rates while assessing potential longer-term economic impacts from rising fuel prices. Central bank officials are searching for signs of sustained damage to economic growth as energy costs continue climbing.

In currency markets, the Indian rupee fell to a record low against the dollar, forcing the Reserve Bank of India into a defensive position as imported energy costs strain the country's trade balance. The rupee's weakness reflects broader emerging market pressures from higher commodity prices.

Economic data showed mixed results across major economies. France's economy unexpectedly stagnated in the latest quarter, with officials citing geopolitical tensions involving Iran as a contributing factor. Meanwhile, China's manufacturing sector continued to expand despite facing pressure from the same regional conflicts.

Australia reported slower export price growth of 0.5% in the first quarter, weighed down by weakness in iron ore prices, while import prices rose 0.1%. The divergent trends highlight how different economies are experiencing varying impacts from current global economic pressures.

Bond markets also faced selling pressure as investors positioned for potential policy responses from central banks dealing with the dual challenges of supporting growth while managing inflation risks from higher energy costs.