Crypto traders traded more than $500 million in synthetic oil futures over the weekend on the decentralized exchange Hyperliquid. The bet is that a new escalation in the Middle East could push oil prices back to $100 per barrel.
A sharp spike in blockchain trading activity occurred after Iran unexpectedly closed the Strait of Hormuz to commercial shipping. This decision reversed the opening that had been announced just a day earlier.
Reports of attacks on ships near the key route forced investors to urgently look for ways to hedge oil risks while traditional financial markets were closed.
Oil Surges on Hyperliquid
On Hyperliquid oil prices surged over the weekend. Perpetual Brent futures climbed above $90 per barrel and essentially recovered the recent 10% drop that the market saw on Friday after news of the brief Strait of Hormuz opening.
Contracts for West Texas Intermediate also jumped and reached $86. For comparison, on traditional commodity exchanges, they closed around $79 on Friday.
This whole story clearly shows where part of the trading activity is gradually shifting. While traditional markets are closed, blockchain platforms keep operating without pause, and that’s exactly where speculative flows go during such moments.
Hyperliquid has the infrastructure for such deals. Through the HIP-3 system, users can launch 24/7 leveraged futures markets for regular assets like oil, gold, and stocks. But entry isn’t free. To open such a market, you need to lock up 500,000 HYPE tokens as collateral.
Amid the new wave of tension, interest in these instruments has only grown. Open interest in synthetic markets on Hyperliquid has already surpassed $2 billion, a new record for the platform.
US and Iran Escalate Strait of Hormuz Tensions Again
The new escalation is linked to the breakdown of a temporary truce that was supposed to last until April 22.
Donald Trump said that the US naval blockade of Iranian ports will remain until the parties reach a peace agreement.
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In response, the Islamic Revolutionary Guard Corps threatened to attack any commercial ships approaching the strait and stated that restrictions would remain until the US lifts its measures.
After the strait was closed, the head of the Iranian parliament’s national security and foreign policy commission, Ebrahim Azizi wrote on X:
‘We warned you, but you didn’t listen! Now watch as the situation in the Strait of Hormuz returns to its previous state.’
Crypto traders on prediction markets quickly priced in the negative scenario. On the Polymarket platform, the probability that shipping in the strait will be restored by the end of the month dropped to 22% at the time of publication.
Probability of the Strait of Hormuz Reopening. Source: Polymarket
Against this backdrop, geopolitical tension also halted crypto market growth. On Sunday, bitcoin hovered around $75,028 as traders began moving out of riskier assets into defensive instruments tied to energy.
Given that inflation is already a problem, markets are preparing for rising production and logistics costs. If oil breaks above $100 when traditional markets open, the pressure may only intensify.
