Tokenized crude futures on Hyperliquid fell sharply on Monday after a report said G7 finance ministers would discuss a coordinated release of emergency oil reserves through the International Energy Agency. The platform's CL-USDC contract dropped from a high of $118 to $102.83.
The pullback interrupted a powerful war-driven rally. Earlier in the session, the contract had surged more than 25% as conflict expanded over the weekend, with Iran appointing a new supreme leader, Israeli strikes intensifying into Lebanon, and Iranian missiles hitting Saudi Arabia.
Supply shock pushed crude higher before policy headlines hit
According to the report, three G7 countries, including the United States, have backed the idea. Finance ministers are expected to hold a call with IEA Executive Director Fatih Birol to discuss the effect of the Iran war on energy markets.
Supply concerns had already intensified. Iraq's oil output fell by roughly 60%, while tanker traffic through the Strait of Hormuz collapsed. That sent the contract to $118 before the G7 headline knocked it back. Even after the reversal, CL-USDC was still up 7.2% on the day, though far below its intraday peak.
Crypto-native oil exposure draws heavy volume
Open interest in the contract stands at $181.9 million, with $823 million in 24-hour trading volume. The figures point to strong demand for oil exposure on crypto-native venues, where traders can respond to weekend developments before traditional commodity markets reopen on Monday.
If the reserve release happens, it would mark the largest coordinated oil-market intervention since the 2022 Russia-Ukraine war. Its impact will depend on the size of the release and on how long the Strait of Hormuz remains effectively closed. Bitcoin also recovered during the day, rising above $67,300 after slipping below $66,900 earlier.