CFTC probes oil trades minutes before Trump's Iran strike delay, WSJ reports
Minutes before President Trump announced on social media that he was postponing strikes on Iran's energy infrastructure, more than $800 million in oil futures changed hands, arousing suspicion. The CFTC is now scrutinizing whether an insider with prior knowledge traded on that information.
Minutes before US President Donald Trump announced on social media on March 23 that he was postponing strikes on Tehran's energy infrastructure, a burst of off-hours trading swept the oil market. According to London Stock Exchange Group (LSEG) data, more than $800 million in US and international oil futures changed hands within minutes, arousing suspicion, The Wall Street Journal reported Tuesday.
Profits from well-timed bets
The traders behind those well-timed bets profited after US oil prices dropped by as much as 13% following Trump's reversal. Based on volume-adjusted average prices, at least five firms made gains of $5 million or more from crude futures trades that day, the report said.
CFTC investigation
The Commodity Futures Trading Commission (CFTC) is now scrutinizing the surge in trading volumes. The regulator is trying to gauge whether an insider with prior knowledge of Trump's March 23 post traded on that information or leaked it to someone who could do so, the report said.
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Ongoing investigation
Some firms approached by the CFTC attributed their trading decisions to a headline that appeared about 15 minutes before Trump's post. The CFTC's investigation is continuing, according to the report.
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