Market Chatter: $7 Billion Oil Bets Placed Ahead of Trump's Iran Announcements Spark Scrutiny
Oil market bets totaling as much as $7 billion were placed ahead of major Iran-related announcements by US President Donald Trump in March and April, a Reuters analysis of exchange data, published Thursday, showed, raising fresh scrutiny over possible insider trading.The trades, spread across crude, diesel and gasoline futures on the Intercontinental Exchange (ICE) and the Chicago Mercantile Exchange (CME), far exceed previously reported positions worth about $2.6 billion.Reuters said it could not determine who placed the trades or whether they originated in the US or abroad.The US Commodity Futures Trading Commission is investigating the activity, a person familiar with the matter told Reuters in April, but has not publicly confirmed a probe.Separately, ABC News reported Thursday that the US Department of Justice is also investigating oil trades linked to the Iran conflict.The trades involved short positions that profited from sharp declines in oil prices following Trump's announcements on Iran. Traders first identified unusual activity on March 23, minutes before Trump delayed and threatened attacks on Iranian power infrastructure, sending oil prices sharply lower.Similar trading patterns appeared on April 7, before Trump announced a ceasefire with Iran; on April 17, before Iranian officials discussed reopening the Strait of Hormuz; and again on April 21, before Trump extended the ceasefire.In response to' request for comment, White House spokesperson Davis Ingle said, "All federal employees are subject to government ethics guidelines that prohibit the use of nonpublic information for financial benefit."He added that any implication that administration officials "are engaged in such activity without evidence is baseless and irresponsible reporting."Reuters' expanded analysis found coordinated sell orders across Brent and West Texas Intermediate crude futures, as well as European diesel and US gasoline contracts, often executed within minutes of key announcements.It found that on March 23 alone, traders sold roughly $2.2 billion in oil and fuel futures contracts shortly before Trump's announcement. Oil prices later fell by over 10%, while fuel prices dropped by about 12%.Reuters cited information from Adi Imsirovic, a veteran oil trader and associate at the Center for Strategic and International Studies, who said the trades appeared "well informed" and noted regulators could trace the activity through exchange data.ICE, CME, the Justice Department, and the CFTC did not immediately respond to requests for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)