Federal investigators are examining a series of large oil trades placed shortly before major geopolitical developments tied to the Iran conflict, according to a new report.
The Department of Justice and the Commodity Futures Trading Commission are reviewing whether the timing of the trades reflects unusual market behavior or potential misuse of nonpublic information.
The pattern of trades was first reported by Reuters, which identified unusually timed positions in crude markets ahead of public announcements that were followed by sharp moves in oil prices.
Market data used in the review was provided by the London Stock Exchange Group, which tracks trade timing and volume across global energy markets but does not identify individual traders or account holders.
On March 23, traders placed more than $500 million in positions betting on falling oil prices roughly 15 minutes before President Donald Trump announced a delay in planned action related to Iran's power infrastructure. Oil prices declined after the announcement became public, according to the data.
On April 7, about $960 million in similar positions were placed hours before Trump announced a temporary ceasefire linked to the Iran conflict. The announcement was followed by a drop in crude prices as markets reacted to easing geopolitical tensions.
On April 17, approximately $760 million in trades were executed shortly before Iranian Foreign Minister Abbas Araghchi posted that the Strait of Hormuz remained open. The Strait is a key global energy shipping route, and statements about its status often influence oil pricing. Prices fell shortly after the post, according to data.
On April 21, traders placed around $430 million in bearish positions shortly before Trump announced an extension of the ceasefire arrangement connected to Iran-related negotiations. Oil prices again moved lower following the announcement.
Market surveillance of derivatives activity is being conducted by the U.S. Commodity Futures Trading Commission, which monitors futures and options markets for potential manipulation, unusual trading patterns and compliance with federal regulations. The agency has not commented publicly on the specific trades under review.
The Department of Justice has not issued public comments on the investigation. Both the DOJ and the Commodity Futures Trading Commission routinely coordinate on cases involving potential market abuse in commodities and derivatives trading.
Energy markets remain highly sensitive to developments in the Iran conflict, particularly events involving shipping routes and potential supply disruptions. The Strait of Hormuz continues to be closely monitored by traders due to its role in global crude oil transport.
The investigation remains ongoing, and authorities have not indicated whether any enforcement actions or charges will follow.
