Involved in the biosynthesis of cyclooctatin, a potent inhibitor of lysophospholipase. Catalyzes the stereospecific hydroxylation of cyclooctat-9-en-7-ol to form cyclooctat-9-ene-5,7-diol. AH2 + cyclooctat-9-en-7-ol + O2 = A + cyclooctat-9-ene-5,7-diol + H2O Belongs to the cytochrome P450 family.