G7 oil reserve release triggers crypto liquidations

G7 and IEA may release 400M barrels from reserves, causing a $15 oil price drop and over $225M in crypto liquidations.

G7 countries, in collaboration with the International Energy Agency (IEA), are considering a coordinated release of up to 400 million barrels from emergency oil reserves. This move aims to address severe disruptions in global energy markets caused by rising geopolitical tensions and blockages in the Strait of Hormuz. The announcement led to a sharp $15 per barrel drop in US oil prices within two hours, with prices nearing $100 per barrel. The resulting volatility quickly spilled over into crypto markets, triggering over $225 million in liquidations across crypto derivatives, mainly affecting Bitcoin and Ethereum. Additionally, tokenized crude oil futures on crypto-native platforms experienced significant price swings, reflecting strong demand for oil exposure outside traditional market hours. If executed, this would be the largest coordinated oil market intervention since 2011, aiming to stabilize prices and secure energy supplies.