Oil prices fell sharply early on Monday after reports that G7 finance ministers were planning an emergency conference call to discuss a coordinated release of strategic crude oil, giving markets the possibility of a policy response to the war-induced supply shock.
The Financial Times reports that G7 finance ministers are planning an emergency conference call to discuss the possibility of a coordinated release of 300 million to 400 million barrels from the Strategic Oil Reserve to calm the market after the war-induced oil price spike.
In Hyperliquid, crude oil futures rose nearly 25% overnight to a peak of about $117, before falling about 14.5% to about $100 after the G7 report came out. The reversal suggests traders are quickly reassessing the risks of a coordinated release of reserves, even as the conflict continues to threaten supply.
Crude oil/USD price chart. Source: Hyper Liquid
Bitcoin rebounds after previous drop
Bitcoin ($BTC) also rebounded after an initial decline during the oil surge. After falling to around $65,725, CoinGecko data shows: $BTC At the time of writing, it had risen to $67,992.88, an increase of about 3.45% in a few hours.
CryptoQuant analyst Dirkforst said in a market note that rising oil prices and Strait of Hormuz tensions could weigh on risk appetite and complicate the outlook for volatile assets such as Bitcoin.
“Historically, periods when oil prices regain momentum are often $BTC “It’s the end of the cycle,” he wrote.
Weekend trading volume of ultra-liquid HIP-3 hits record due to soaring crude oil prices
This episode also highlighted how on-chain venues can attract demand when traditional markets are closed.
Hyperliquid’s oil-related contracts have already surged after the first US and Israeli attack on Iran in late February, with traders turning to decentralized perpetual trading for 24-hour commodity exposure. Tradexyz, a trading interface built on Hyperliquid, surpassed its highest weekend trading volume of over $610 million on February 28, according to Hyperliquid data.
Related: Iranian cryptocurrency outflows spike 700% after US and Israeli airstrikes
As the conflict escalates, oil prices continue to rise, and Tradexyz’s weekend trading volume reached nearly $720 million, surpassing the previous weekend’s record, on-chain analytics hub Pine Analytics reported in Monday’s XPost.
“The two waves of demand on Tradexyz over the past month indicate that the platform is absorbing demand for traditional assets from people who don’t have TradFi access, or at a time when these exchanges are offline,” Pine wrote.
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