- Crude oil prices rose on Hyperliquid after Iran suspended US nuclear talks.
- Iran has accused Israel of intensifying its attacks against Lebanon.
- There are concerns about the future of the US-Iran deal.
Crude oil prices rose on Hyperliquid on Saturday as concerns about the just-signed deal between the US and Iran rose. WTI contracts rose to $77 from this week’s low of $72. Similarly, Brent, the global benchmark, crossed the important level of $80.
Crude Oil Price Jumps on Hyperliquid as Iran Delays Nuclear Talks
Energy prices are rising on Hyperliquid after Iran suspended its nuclear talks with the United States following an escalation between Israel and Lebanon. Brent’s volume and open interest rose to $60 million and $113 million, respectively.
WTI, on the other hand, had a volume of $108 million and $150 million, respectively. These contracts have become among the most actively traded assets on Hyperliquid, especially on weekends when the traditional markets are closed.
Crude oil prices retreated sharply this week, with the two benchmarks dropping below the key $80 support after the US and Iran reached an agreement to reopen the Strait of Hormuz.
Iran has already reopened the Strait, while the US has ended its blockade against Iranian ports, a move that will lead to higher supplies at a time when inventories have tanked.
The risk, which explains why oil prices are rising today, is that Iran has suspended nuclear talks with the US, citing the ongoing clashes in Lebanon. On Friday, tens of people were killed by Israeli strikes in South Lebanon after Hezbollah killed four military officials.
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There is a risk that the US-Iran deal will not work out as intended. For one, Israel has rejected the document and maintained that it had the right to defend itself. Most notably, US intelligence officials have said that Israel will work to undermine the deal.
Israel will do that by launching attacks against Lebanon, especially Beirut, a move that will attract retaliation from Iran. If this escalates, the US will be forced to take Israel’s side, leading to the closure of the Strait.
Implications for the Crypto Market
Soaring crude oil prices have significant implications for the crypto market. On the positive side, it means that Hyperliquid will see more trading opportunities as oil has become one of its top assets.
On the other hand, rising prices mean US inflation will remain elevated for a while, which may prompt the Federal Reserve to hike interest rates in the near term.
Fed officials voted to leave interest rates unchanged at 3.50%-3.75% at this meeting. The dot plot, however, showed that nine officials predict that the bank will need to hike rates later this year.
Bitcoin and other crypto prices often underperform the market when interest rates rise.
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