Water can only get to 100C before it boils (usually anyway – ambient pressure affects this value – up a mountain it’ll be lower).
Once water hits 100C all the remaining energy is being used to turn the water to steam, so the pot never gets any hotter.
Oil meanwhile can get up to about 300C before it boils, so it’s capable of bringing things up to a temperature they’ll fry at while still remaining liquid.
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