Crude oil price retreated on Hyperliquid, even as tensions between the US and Iran escalated. Brent retreated to $93.75 on Saturday, with its 24-hour volume rising to $180 million and its open interest rising to $333 million. WTI crude oil retreated to $90, with its 24-hour volume and open interest being at $344 million and $211 million.
Crude oil price chart | Source: Hyperliquid
In a statement, CENTCOM said that it had intercepted missile and drone attacks moving towards countries like Bahrain and Kuwait. It said that six ballistic missiles were intercepted, while a seventh one did not reach its intended target.
These developments are happening at a time when talks between the US and Iran have largely stalled. In a statement this week, Iran said that it had suspended talks with the US, pointing to Israel’s violations of the ceasefire by its continued bombing of Lebanon. Hezbollah then rejected a ceasefire agreement reached between Israel and Lebanon.
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There are signs that tensions between the two countries will continue in the foreseeable future. Besides, Iran is in no hurry to reach a deal with the United States as officials believe that they have an upper hand.
A resumption of kinetic action between the two countries, together with Israel, would be risky for crude oil prices. It would mean a prolonged closure of the Strait of Hormuz. This would come at a time when crude oil inventories have dropped sharply. Recent data shows that US Strategic Petroleum Reserves have plunged to the lowest level in over 22 years.
A rebound in crude oil prices would have major implications across the board. For one, it would lead to higher consumer and producer inflation in the coming months. The headline CPI and PPI jumped to 3.8% and 6.0%, respectively.
This is happening at a time when the labor market is doing well. A report released on Friday showed that the economy added over 172k jobs in May this year. The unemployment rate remained unchanged at 4.3%. This means that the Federal Reserve will hike interest rates this year.
Hyperliquid has become a favorite venue for trading crude oil futures during the ongoing US-Iran war. Its total perpetual futures volume jumped by over 188 billion in the last 30 days, pushing its fees much higher over time.
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