Oil’s war rally just hit its first real hurdle.
Tokenized crude futures on Hyperliquid’s CL-USDC contract fell sharply from a high of $118 to $102.83 on Monday after the Financial Times reported that G7 finance ministers would discuss a coordinated release of emergency oil reserves through the International Energy Agency.
Bitcoin rose above $67,300, reversing a move below $66,900 from earlier in the day.
Three G7 countries, including the United States, have expressed support for the plan. The ministers and the IEA’s managing director, Fatih Birol, are expected to hold a call to discuss the impact of the Iran war on energy markets.
The turn went quickly. CL-USDC had risen more than 25% earlier Monday as the conflict widened over the weekend, with Iran appointing a new supreme leader, Israeli attacks escalating into Lebanon and Iranian missiles hitting Saudi Arabia.
Iraq’s oil production fell by about 60% and tanker traffic through the Strait of Hormuz collapsed. The contract hit $118 before G7 headlines pulled it back to $102, still up 7.2% on the day but far from the highs.
Open interest on the contract is at $181.9 million with $823 million in 24-hour volume, reflecting the huge demand for oil exposure in crypto-native venues where traders can react to weekend headlines that traditional commodity markets cannot price in before Monday’s open.
The G7 reserve release, if it materializes, would be the most significant coordinated intervention in oil markets since the Russia-Ukraine war in 2022. Whether it is enough to offset the supply disruption depends on the scale of the release and how long the Strait of Hormuz remains effectively closed.
