The US Department of Justice (DOJ) is investigating a series of large oil trades placed shortly before major announcements by President Donald Trump related to the Iran war, according to a report by ABC News.
The probe, being conducted along with the Commodity Futures Trading Commission (CFTC), is examining trades worth more than $2.6 billion that appeared to predict sharp falls in oil prices before key policy announcements and diplomatic updates. Officials have not publicly commented on the investigation. The trading data, obtained from the London Stock Exchange Group (LSEG), does not reveal who placed the trades and does not prove insider trading took place.
Trades placed before key announcements
According to the report, several massive bets were placed shortly before announcements linked to the conflict. On March 23, traders reportedly placed more than $500 million in bets that oil prices would fall around 15 minutes before Trump announced he would delay threatened attacks on Iran’s power grid.
On April 7, another $960 million bet on falling oil prices was made hours before Trump announced a temporary ceasefire. The report also said that on April 17, traders placed $760 million worth of bets roughly 20 minutes before Iranian Foreign Minister Abbas Araghchi posted on social media that the Strait of Hormuz remained open.
A few days later, on April 21, traders reportedly made another set of bets worth $430 million about 15 minutes before Trump announced an extension of the ceasefire.US authorities are examining whether confidential information linked to military or diplomatic decisions may have been used to gain an unfair advantage in the oil market.
The investigation is focused on oil futures trading on exchanges operated by CME Group and Intercontinental Exchange, according to earlier reports. The CFTC had already been reviewing unusual market activity tied to major developments in Trump’s Iran policy, including the trades made on March 23 and April 7.
Oil markets remain volatile during Iran conflict
Oil prices have fluctuated sharply during the US-Israel conflict with Iran, as markets reacted to military strikes, ceasefire announcements and developments involving the Strait of Hormuz.
The Strait of Hormuz is one of the world’s most important energy shipping routes, connecting the Persian Gulf to global markets. A large share of the world’s crude oil, petroleum products and liquefied natural gas passes through the narrow waterway. US lawmakers have also called for tighter scrutiny of the trades, warning that sensitive information related to war and diplomacy could create opportunities for market manipulation if leaked before public announcements.