WASHINGTON, May 8 (Bernama-dpa) – The United States (US) Department of Justice (DoJ) is investigating a series of suspiciously timed transactions in the oil market that took place shortly before major policy announcements by President Donald Trump and top Iranian officials about the Iran war, German Press Agency (dpa) reported, citing US media reports on Thursday.
The investigation involves at least four trades in which traders made a total of more than US$2.6 billion by betting on oil prices falling before they did, reported US broadcasters ABC News and NBC News, citing people familiar with the matter.
The bets were reportedly placed shortly before new announcements by Trump or Iranian government officials. The Commodity Futures Trading Commission (CFTC), the federal agency responsible for commodity trading, is also involved in the investigation.
According to ABC News, traders bet more than US$500 million that oil prices would fall in March shortly before the US president announced the postponement of threatened attacks on Iran's power grid. In April, there were three additional transactions that are now under investigation:
On April 7, traders reportedly bet US$960 million on falling oil prices shortly before Trump announced a temporary ceasefire. On April 17, speculators bet US$760 million on falling oil prices, 20 minutes before Iranian Foreign Minister Abbas Araghchi announced the reopening of the Strait of Hormuz.
On April 21, unidentified parties placed US$430 million on falling oil prices, 15 minutes before Trump's announcement of an extended ceasefire.
A source told NBC News that the investigation was still in its early stages and that there is no evidence of criminal misconduct so far. In addition to the current probe, investigators also plan to examine suspicious activity on speculative trading platforms in a separate proceeding, also related to the Iran conflict.
Oil and gas prices have risen sharply on global markets as a result of the Iran war.
-- BERNAMA-dpa
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