Oil prices fell sharply after reports that Group of Seven (G7) finance ministers planned an emergency call to discuss coordinated withdrawal of strategic crude supplies, giving markets a possible policy response to a war-torn supply shock.
The Financial Times reported that G7 finance ministers plan to make an emergency call to discuss a possible coordinated withdrawal of 300 million to 400 million barrels from strategic oil reserves to calm markets after oil prices rose as a result of the war. The G7 countries include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with the European Union as a non-member.
In Hyperliquid, crude oil futures rose nearly 25% overnight to around $117, before falling about 14.5% to $100 after the G7 reports. The move suggested traders were quickly reassessing the risk of releasing coordinated stocks, even as the conflict threatened supplies.
Bitcoin is rebounding after a previous decline
Bitcoin (BTC) also rebounded after earlier declines amid the oil rally. After falling to $65,725, data from CoinGecko shows that BTC has risen to $67,992.88 at the time of writing, a gain of around 3.45% in a few hours.
CryptoQuant analyst Darkfost said in a market note that rising oil prices and tensions in the Hormuz coin could increase risk appetite and complicate the outlook for volatile assets such as Bitcoin.
“Historically, periods when oil prices regain strength often coincide with the latter stages of the BTC cycle,” he said.
Hyperliquid HIP-3 reached a record high over the weekend on rising oil prices
The episode also highlighted how onchain spaces can attract demand when traditional markets are closed.
Hyperliquid oil contracts had already surged after the initial US-Israeli attack on Iran in late February, and traders turned to the decentralized forever for overnight exposure to the commodity. Hyperliquid data shows that Tradexyz, a trading interface built on Hyperliquid, reached its highest weekend volume of more than $610 million on February 28.
related to: Crypto outflows from Iran surged 700% after US-Israeli airstrikes
As the conflict escalates, oil prices continued to rise, and Tradexyz surpassed its previous weekend record with nearly $720 million in trading volume over the weekend, onchain think tank Pine Analytics said in an X message on Monday.
“These two waves of demand over the past month on Tradexyz show that the platform is absorbing demand for traditional assets from people who don’t have access to TradFi or at times when these exchanges are offline,” Pine wrote.
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