I noticed yesterday a sudden 5% increase in oil futures on Hyperliquid after the U.S. and Israel missile strikes in Iran. The connection is simple but has a big impact – when there are geopolitical tensions, demand for safe-haven assets like oil, gold, and silver immediately rises.

What is Iran’s role in all this? Well, it controls the Strait of Hormuz, the critical chokepoint where over $500 billion worth of daily oil and gas shipments pass through. Although Iran is small in the world, its position is a game-changer for global energy markets. So when there’s conflict there, prices automatically go up.

Specifically on Hyperliquid, I saw that oil-related perpetuals have reached over $4 million in trading volume. Gold and silver contracts also increased for the same reason – investors are hedging geopolitical risk.

How does all this relate to crypto? I also saw movements in Bitcoin markets due to inflation concerns. When oil prices rise, there’s a ripple effect on inflation, which influences central bank decisions and risk appetite.

Oh, and a random observation – Bhutan offloaded around 70% of its Bitcoin holdings in October 2024, reducing its stash from 13,000 BTC to roughly 3,954 BTC. What’s the connection to geopolitical events? Probably just timing – governments are adjusting their crypto holdings based on the broader economic outlook. But the timing is really interesting given all the market volatility.