The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) are probing a series of oil futures trades valued at more than $2.6 billion. The transactions were executed just before major announcements by President Donald Trump and Iranian Foreign Minister Abbas Araghchi, raising suspicions of insider trading.
Four Key Trades at Critical Moments
According to trading data from the London Stock Exchange Group obtained by ABC News, at least four large bearish bets were placed ahead of market-moving statements:
- March 23: Traders placed $500 million in short positions roughly 15 minutes before Trump announced a delay in military strikes on Iran's power grid.
- April 7: A $960 million short contract was established hours before Trump declared a temporary ceasefire with Iran.
- April 17: About 20 minutes before Araghchi stated the Strait of Hormuz remained open, $760 million in bearish bets appeared.
- April 21: Another $430 million short trade occurred roughly 15 minutes before Trump extended the ceasefire.
The total value and timing of these trades have drawn intense scrutiny from regulators.
Congressional Pressure and Official Investigation
Representative Ritchie Torres urged the SEC and CFTC to jointly investigate possible insider trading and market manipulation in a letter dated April 14. Torres stated: “If traders acted on advance knowledge of the ceasefire announcement, it would not only violate the law but also represent a fundamental breach of public trust in the fairness of U.S. markets.”
The DOJ and CFTC have now launched a formal probe. No individuals or firms have been publicly accused of wrongdoing. The investigation focuses on whether the timing and scale of the speculation were linked to access to non-public government or diplomatic information.
Market Volatility and Geopolitical Context
During this period, oil prices swung wildly as the Trump administration sent mixed signals on Iran—from threatened military action to sudden ceasefires. Crude futures fell to $88 per barrel before rebounding after Iran claimed control of the Strait of Hormuz. Reuters first reported the pattern of oil market activity connected to Iran conflict developments.
Regulators are working to identify the traders behind these massive positions. While the exchange data does not reveal identities, cross-agency cooperation could uncover any misuse of confidential information. Analysts warn that if insider trading is proven, the penalties could include substantial fines and criminal charges.
Neither the White House nor Iranian officials have commented on the investigation. OPEC has also taken note, cautioning that heightened regulatory scrutiny may further distort geopolitical premiums in energy markets.