DOJ, CFTC Probe $2.65B Oil Futures Trades Before Iran News

Federal investigators at the Department of Justice and the Commodity Futures Trading Commission are examining roughly $2.65 billion in oil futures positions placed shortly before public statements tied to Iran that were followed by declines in oil prices. Trading data from the London Stock Exchange Group shows the timing and size of the wagers, and regulators are reviewing whether nonpublic government or diplomatic information influenced the trades.

The data identifies four large transactions connected to bets that oil prices would fall. On March 23 more than $500 million in positions were placed about 15 minutes before President Trump said he would delay threatened attacks on Iran’s power grid. On April 7 roughly $960 million was placed hours before a temporary ceasefire was announced. On April 17 about $760 million was wagered around 20 minutes before Iranian Foreign Minister Abbas Araghchi posted that the Strait of Hormuz was open. On April 21 roughly $430 million was placed about 15 minutes before Trump extended the ceasefire. Those trades add to about $2.65 billion in bets tied to declines in oil prices.

Representative Ritchie Torres asked the Securities and Exchange Commission and the Commodity Futures Trading Commission to open a joint probe into at least one of the trades. In an April 14 letter he wrote, “According to multiple credible press accounts, traders placed an approximately $950 million bet on declining oil prices shortly before the ceasefire became public.” He added that trading on advance knowledge would violate the law and would harm confidence in market fairness.

The trading records do not identify the parties that placed the wagers and do not by themselves prove anyone acted on inside information. Federal officials have not publicly accused any individual or firm of wrongdoing. The DOJ and the CFTC have declined to comment on the inquiry.

Investigators are focused on whether the timing and magnitude of the trades indicate access to confidential communications before market-moving announcements. Oil futures are sensitive to geopolitical developments that affect supply expectations, such as threatened strikes, ceasefires and the status of strategic waterways. The pattern under review shows concentrated bets on price declines minutes to hours before four public statements that were followed by falling prices.