DOJ Investigates $2.6 Billion In Oil Market Trades Related To Iran War, Sources Say

StockMarketTrades

The Department of Justice is allegedly investigating at least four oil market-related trades that have been placed prior to major announcements from President Donald Trump and a top Iranian official regarding the Iran war, according to unnamed sources cited by ABC News.

The traders made over $2.6 billion betting that oil prices would fall right before they actually did, raising suspicion of insider trading, but not proving it.

While the DOJ and the Commodity Futures Trading Commission (CFTC) have not commented on an investigation of the trades, CFTC Chairman Michael Selig said in testimony before Congress in April that his agency ​will go after wrongdoers, but did not comment on a possible ongoing investigation.

“I want to be crystal clear: to anyone who engages in fraud, ⁠manipulation, or insider trading in any of our markets: we will find you, and you will face the ​full force of the law,” Selig said in the remarks seen by Reuters.

ABC News obtained information about the trades from the London Stock Exchange Group. They reportedly show that:

On March 23, 15 minutes before Trump announced that he would delay threatened attacks on Iran’s power grid, traders bet more than $500 million that oil prices would fall.

On April 7, hours ahead of a temporary ceasefire announced by Trump, traders bet $960 million that oil prices would fall.

On April 17, 20 minutes before Iran’s Foreign Minister Abbas Araghchi posted on social media saying that the Strait of Hormuz was open, traders bet $760 million that oil prices would fall.

On April 21, 15 minutes before Trump announced he would extend the ceasefire, traders placed a series of bets worth $430 million that oil prices would fall.

Reuters was first to report on the story. On March 24 they said “Traders bet half a billion dollars ​on the price of crude only 15 minutes before U.S. President Donald Trump announced a five-day delay to attacks ‌on Iran’s energy infrastructure that sent the market plunging, exchange data and Reuters calculations showed.”

On April 15 Reuters reported “The U.S. Commodity Futures Trading Commission is examining a series ‌of trades in oil futures placed shortly before major shifts in President Donald Trump’s Iran war policy, a person familiar with the matter said on Wednesday.”


In case you missed it...

Trending

User Registration

By clicking “Register” above, you agree to the Terms of Use & Privacy Policy.