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What is the significance of holy oil and holy water?

There are different kinds of oils and waters used in the services of the Coptic Orthodox Church. The Holy Oil (Myron) and Holy Water of the Mysteries of Baptism and Chrismation are the visible work of the Holy Spirit. The Holy Spirit through specific prayers by the priest consecrates the Myron Oil and the Holy Water. These are different from the oil of blessing, which a clergy may carry with him or the sprinkling of water at the conclusion of the Divine Liturgy or the blessing of a home. Holy Oil refers to the Myron Oil, which is administered by the priests during the Mysteries of Baptism and Chrismation. The same Chrism Oil is also used to consecrate churches, altars, vessels, and icons. Holy Water refers to the Hoy Mystery of Baptism, which also contains drops of the Holy Myron Oil in which the newly baptized is emerged. This Mystery creating the transformation of the individual from death to life by emergence in the Holy Water is the work of the Holy Spirit. Thus, these elements, the Holy Oil and Holy Water, are not to be used for other purposes other than what is aforementioned.

Anointing with oil was a ritual that began in the Old Testament to consecrate specific persons, such as kings and prophets, for designated purposes, as well as certain instruments uniquely consecrated for the service. The same compounds are used in the Holy Myron, but additionally and even more importantly, it is mingled with the original spices that were laid upon the body of our Lord Jesus Christ at His burial. These remnants were preserved by the apostles and added to the mixture of the compound to form the Myron Oil, which we have today. The Holy Spirit works in an invisible way through these Mysteries in the visible use of the oil and water. The Holy Oil used in the Mystery of the Unction of the Sick has different components. It is derived from olive oil, transformed by seven specific prayers, and administered by the priest to individuals while the priests and the individuals are fasting by abstinence. The oil used during the Holy Mystery of Matrimony is the oil that represents the descent of the Holy Spirit upon the bride and groom. It is the same oil of blessings, but since the priest prays certain prayers on this oil during the crowning ceremony, it receives a certain power special for the sacrament of the matrimony uniting the two into one. The water used in the Lakkan prayers (Liturgy of the Waters) is also for a blessing. People may keep it in their homes and drink from it. Other oils that are generally used such as the ones we receive from monasteries are for blessings.