DOJ, CFTC Probe $2.6B Oil Trades Before Iran News

The Department of Justice and the Commodity Futures Trading Commission are investigating at least four large oil futures trades totaling more than $2.6 billion, placed in the minutes or hours before public announcements related to the conflict in Iran that caused oil prices to drop.

Trading data from the London Stock Exchange Group shows the bets were all on declining oil prices. On March 23, traders placed more than $500 million in wagers about 15 minutes before President Donald Trump announced he would delay threatened attacks on Iran's power grid. On April 7, a $960 million trade occurred hours ahead of Trump's statement on a temporary ceasefire. Another bet worth $760 million was made on April 17, roughly 20 minutes before Iranian Foreign Minister Abbas Araghchi posted on social media that the Strait of Hormuz remained open. Finally, on April 21, traders wagered $430 million about 15 minutes before Trump extended the ceasefire.

The trades first drew attention after Representative Ritchie Torres, a Democrat from New York, sent a letter on April 14 to the Securities and Exchange Commission and the Commodity Futures Trading Commission urging a joint probe into the April 7...