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The hydraulic oil level warning light on a 1998 E320 4MATIC indicates that the hydraulic fluid in the system is low, which can affect the operation of the Power Steering, suspension, and other hydraulic components. It's important to check the hydraulic fluid reservoir and top it off if necessary with the correct type of fluid. If the warning light persists after adding fluid, there may be a leak or other issues that require further inspection. Regular maintenance and monitoring can help prevent hydraulic system failures.

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