Oil futures traded on the decentralized exchange Hyperliquid experienced a dramatic crash over the Memorial Day weekend after President Donald Trump unexpectedly announced a deal to reopen the Strait of Hormuz. West Texas Intermediate (WTI) crude plunged to as low as $89, while Brent crude, the global benchmark, tumbled to $93 on May 24, and the sell-off continued with WTI gapping lower to $92 on May 25. The sharp moves came as traders had widely anticipated a U.S. military strike against Iran, a scenario that had driven crude prices above $100 just days earlier.
The reversal began when Trump, in a series of Truth Social posts, revealed that the U.S. and Iran had reached an agreement to resume oil shipments through the critical chokepoint, which had been disrupted for months. The news blindsided markets that were positioned for a regional conflict — odds of an attack had spiked after Trump canceled plans to attend his son’s wedding and remained in Washington over the long holiday weekend. Iranian threats to expand attacks beyond the Middle East, including targeting the Bab al-Mandab strait where 12% of global oil transits, had further fueled war premiums.
Instead, the White House opted for diplomacy, a move Trump acknowledged would require concessions such as lifting the blockade on Iranian ports and easing some sanctions. The about-face drew immediate criticism from Senate allies like Ted Cruz and Lindsey Graham, but Trump defended the process, stating any final deal would be “good and proper” and unlike the Obama-era Iran agreement. With traditional energy markets closed for the U.S. and U.K. holidays, volatility concentrated on Hyperliquid and other RWA-capable platforms offering perpetual oil contracts.
Technical analysis on Hyperliquid’s Brent chart shows a double-top pattern at $113 with a neckline at $83, and a break below the 50-day moving average. WTI also slipped under its ascending trendline from March and the 25-day moving average, with a potential head-and-shoulders formation developing, signaling further downside toward $88. However, the fluid situation could reverse sharply if negotiations collapse.
