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USD800M Oil Trades Minutes Before Trump's Iran U-Turn Sparks Probe
(MENAFN) Just minutes before US President Donald Trump announced via social media on March 23 that he was standing down from planned strikes on Tehran's energy infrastructure, an unusual surge of off-hours trading rattled the oil market — and federal regulators are now taking a hard look.
Data from the London Stock Exchange Group (LSEG) showed that over $800 million in US and international oil futures changed hands within minutes, raising immediate red flags, The Wall Street Journal reported Tuesday.
The trades proved extraordinarily well-timed. US oil prices plunged as much as 13% following Trump's reversal, and those who moved early reaped significant rewards. Based on volume-adjusted average prices, at least five firms each recorded gains of $5 million or more from crude futures trades executed that day, the report said.
The Commodity Futures Trading Commission (CFTC) has since launched a scrutiny of the trading spike. The regulator, which oversees futures markets, is working to determine whether an insider with advance knowledge of Trump's March 23 post personally traded on that information — or passed it to someone who did, according to the report.
At least three firms have drawn the CFTC's attention. London-based investment firm Qube Research & Technologies recorded approximately $5 million in adjusted gains from those trades, while Forza Fund Ltd. netted around $10 million. The trading arm of TotalEnergies, Totsa, posted a comparatively modest profit of roughly $200,000.
Critically, the report stressed that none of the companies have been accused of wrongdoing. Several firms contacted by the CFTC attributed their trading activity to a market headline that surfaced roughly 15 minutes before Trump's post on Truth Social, the report noted.
The CFTC's investigation remains ongoing.
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