Traders Place $760M Bet on Falling Oil Ahead of Hormuz Announcement
Investors placed a significant bet on falling oil prices just before Iran's foreign minister announced that the Strait of Hormuz was open, sparking a sharp drop in crude prices. According to LSEG data, traders sold around $760 million worth of Brent crude futures between 12:24 and 12:25 GMT. This massive trade took place minutes before the announcement, which pushed oil prices down by as much as 11%.
The recent pattern of large trades ahead of major policy shifts has raised concerns among US lawmakers and legal experts about the potential for traders to gain an unfair edge in volatile markets. On April 7, a similar bet worth around $950 million was placed just hours before a two-week ceasefire between the US and Iran was announced.
The US Commodity Futures Trading Commission is investigating these trades, including those on March 23 when investors sold $500 million in oil futures 15 minutes before President Trump's announcement that he would delay attacks on Iran's energy infrastructure. This triggered a 15% drop in crude prices.