US Probes $2.6 Billion of Suspicious Oil Shorts Placed Before Trump Iran Announcements

US authorities are investigating large crude-oil short positions placed just before key announcements by President Donald Trump related to Iran, ABC News reported on May 7.

The Justice Department and the Commodity Futures Trading Commission are examining four oil trades with a combined value of $2.6 billion that were executed shortly before Trump’s formal statements on Iran, the report said. The positions bet on falling crude prices just before sharp declines and yielded substantial profits.

London Stock Exchange Group data show that more than $500 million was wagered on lower oil prices on March 23, 15 minutes before Trump announced a delay to an attack on Iran’s power grid. Another $960 million bearish position was placed just before a temporary ceasefire announcement on April 7. A further $430 million bet on lower prices was recorded 15 minutes before Trump announced an extension of the ceasefire on April 21.

Authorities also detected suspicious trading ahead of a move by Iran. On April 17, a $760 million bet on falling oil prices was placed 20 minutes before Iranian Foreign Minister Abbas Araghchi posted on social media that the Strait of Hormuz would remain open.

Investigators are focusing on whether the trades were made using advance knowledge of nonpublic information. The available data does not identify who placed the trades, and authorities have not found conclusive evidence that insider information was used.