-- The US Department of Justice was investigating at least four oil trades amounting to about $2.6 billion, due to suspicions in timing, as they were placed just before US President Donald Trump and an Iranian official made major announcements about the war in Iran, ABC News reported Thursday, citing sources.
The traders reportedly bet that oil prices would drop just before the actual decline.
On March 23, traders bet more than $500 million on a drop in oil prices 15 minutes before Trump said attacks on Iran's power infrastructure would be delayed, according to London Stock Exchange Group data cited by the news agency.
Further to this, on April 7, hours before Trump announced a temporary ceasefire, traders reportedly placed a $960 million bet that oil prices would fall.
On April 17, traders bet another $760 million on the same price movement 20 minutes before a social media post by Iran's Foreign Minister Abbas Araghchi declaring the Strait of Hormuz "open."
On April 21, traders reportedly placed a series of bets worth $430 million that prices would fall 15 minutes before Trump said he would extend the ceasefire.
The DOJ and the Commodity Futures Trading Commission are leading the investigation, according to ABC News.
The agencies 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.)