How does silicone oil function as an insulating material in transformers?

Silicone oil acts as an insulating material by filling the spaces between conductive components within the transformer, such as windings and cores. Its high dielectric strength prevents electrical currents from passing between these components, thus avoiding short circuits and electrical discharges. Additionally, silicone oil dissipates heat generated during operation, maintaining optimal temperatures and preventing thermal stress on the insulation materials.