-- Investors placed a $760 million bet on falling oil just minutes before Iran confirmed the Strait of Hormuz reopening, Reuters reported Friday.
The trades occurred about 20 minutes before the announcement, marking another instance of large, well-timed positions ahead of key developments in the Middle East conflict, the report noted.
According to LSEG data, investors sold 7,990 Brent crude futures contracts between 12:24 GMT and 12:25 GMT, valued at roughly $760 million.
Iran's foreign minister on X at 12:45 GMT said that passage for all commercial vessels through the Strait of Hormuz would remain fully open during the ceasefire period, according to the report.
Crude prices dropped sharply following the announcement, falling as much as 11% within minutes as markets reacted to the easing of supply concerns.
The report said similar trading patterns have emerged in recent weeks, raising questions among policymakers and legal experts over potential information advantages in volatile oil markets.
Trades worth about $950 million were placed ahead of the Apr. 7 US-Iran ceasefire announcement, the report noted.
On Mar. 23, investors reportedly sold around $500 million in oil within minutes before President Donald Trump delayed planned strikes on Iran's energy infrastructure, which resulted in a decline of about 15%.
The US Commodity Futures Trading Commission is now investigating these transactions over potential links to advance knowledge of policy shifts, according to the report.
(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.)