DOJ probes $2.6B in suspicious oil trades tied to Iran war announcements: report
Federal investigators are currently looking into four suspicious oil trades totaling over $2.6 billion that were placed just moments before significant announcements regarding the Iran conflict caused crude prices to drop, as per a report.
The Department of Justice and the Commodity Futures Trading Commission are conducting an investigation to determine if traders gained access to confidential information related to military and diplomatic events involving the US, Iran, and the Strait of Hormuz, reported by ABC News.
These suspicious trades reportedly involved large bets on oil price decreases just before President Trump and a senior Iranian official made market-moving announcements during the conflict.
Trading data from the London Stock Exchange Group revealed that on March 23, traders placed bets exceeding $500 million on oil price decline right before Trump’s announcement of delaying attacks on Iran’s power grid, resulting in a significant drop in oil prices.
On April 7, approximately $960 million was wagered against oil prices hours prior to Trump’s announcement of a temporary ceasefire. Another suspicious trade occurred on April 17, where traders placed $760 million in bearish oil bets shortly before the Iranian Foreign Minister’s statement on the opening of the Strait of Hormuz.
The strait’s closure is a critical concern for energy markets, and on April 21, traders placed $430 million in bets on falling oil prices just before Trump extended the ceasefire.
Reuters previously reported on some of these trades earlier this year.
While the trading data does not reveal the identities behind the trades or prove illegal activities, the size and timing of these bets have raised concerns about potential insider trading during wartime.
This investigation could be a significant market-integrity inquiry linked to geopolitical events in recent years.
Separately, federal authorities have also been investigating unusual activities on prediction-market platforms related to Iran conflict events, along with an Army soldier facing charges for trading on classified information concerning a US military operation.
The Post has reached out to the DOJ, the CFTC, and the White House for comments on the matter.
