The United States has launched an investigation into suspicious oil trading activity following unusual market movements tied to political announcements, according to a report by Bloomberg. The probe focuses on futures contracts traded across platforms operated by CME Group and Intercontinental Exchange.
On 23 March, oil and equity futures worth billions of dollars were traded just 15 minutes before Donald Trump announced a delay in planned strikes on Iranian energy infrastructure. The announcement, published on Truth Social, triggered a sharp drop in crude oil prices alongside a significant surge in equity markets.
A similar pattern was observed on 7 April, before Trump declared a two-week ceasefire with Iran. In the hours leading up to the announcement, futures trading volumes spiked, followed by a steep decline in oil and gas prices once the statement was made public.
The Commodity Futures Trading Commission has opened investigations into at least two separate incidents within two weeks, both marked by abnormal surges in trading activity ahead of major announcements. Regulators are seeking detailed exchange data, including what is known as “Tag 50”, to identify the entities behind these trades.
According to the report, the scale and timing of these transactions have raised concerns about the potential misuse of non public, market-sensitive information related to shifts in US policy towards the war involving Iran.
The conflict initially triggered a historic disruption in Middle Eastern oil flows, pushing prices sharply higher. However, volatility intensified in the weeks that followed, driven by speculation over the possible resumption of tanker movements through the Strait of Hormuz.
As scrutiny deepens, two Democratic senators have called on regulators to thoroughly examine potential violations linked to these trades. Meanwhile, the White House circulated an internal memo last month warning staff against trading based on sensitive information across financial markets and rapidly expanding event based betting platforms.
In terms of trading infrastructure, West Texas Intermediate crude, the primary benchmark for US oil pricing, is traded on the New York Mercantile Exchange, part of the CME Group. Brent crude, the global benchmark, is traded on the ICE Futures Europe platform in London. While US regulators can directly access trading data for West Texas Intermediate, any requests related to Brent crude must be routed through the UK’s Financial Conduct Authority due to jurisdictional constraints.
