Financial authorities were under pressure to investigate whether investors raked in tens of millions of dollars through insider trading linked to Donald Trump’s halt on attacks on Iran’s energy sites.
Trades worth nearly $600 million (£448 million) were placed on oil markets just minutes before the US president posted a message on his Truth Social platform, according to the Financial Times, which sent the price of oil plunging and stock markets soaring.
The FT reported that some 6,200 Brent and West Texas Intermediate futures contracts changed hands between 6.49am and 6.50am New York time on Monday, before Trump claimed in his post at 7.04am there had been “productive” talks which could lead to an end to his Iran war.
It put the notional value of these trades at $580 million (£433 million), as hopes rose that a deal could be struck to re-open the Strait of Hormuz which has been effectively closed by Iran targeting tankers.
Amid the unusual trades, it quoted one portfolio manager saying: “My gut from watching markets for the last 25 years is this is really abnormal.
“It’s Monday morning, there’s no important data today, there aren’t any Fed speakers you’d want to front run. It’s an unusually large trade for a day with no event risk...Somebody just got a lot richer.”
Responding to claims of insider trading, Liberal Democrat leader Sir Ed Davey urged the Financial Conduct Authority in Britain to probe whether there had been any such activity here linked to Trump’s war which has seen the price of oil soar and killed thousands of people.
Sir Ed told the London Standard: “The financial watchdog should investigate if anyone in the UK has profited from insider trading linked to Trump's war in Iran.”
Appearing before the Commons Treasury Committee, Nikhil Rathi, chief executive of the FCA, was asked by its chair Dame Meg Hillier if it was watching the markets in the UK for signs of insider trading.
He responded: “We are absolutely watching the markets.
“These are extraordinary times. There has been a significant energy, oil price shock.
“The markets are seeking to process in real time very significant pieces of news and our primary focus has been on ensuring resilience and functioning.”
Pressed specifically on how the FCA is looking out for any insider trading, he added: “We look at the transaction data that we get, the reporting we get, the suspicious activity reports that we receive.”
He also emphasised that the oil market was a “distinct market” with “many state actors” including oil producing nations and their supply companies.
Earlier, RedboxGlobal financial market news service also highlighted what was seen as surprising trading.
It posted on X: “TRADERS FLAG $1.5B S&P 500 FUTURES BUY AND $192M OIL FUTURES SELL FIVE MINUTES BEFORE TRUMP ANNOUNCEMENT; INSIDER TRADING”
Global business TV channel CNBC laid out the details of trades which were raising so many eyebrows, stating:.
* At around 6:50 a.m. in New York, S&P 500 e-Mini futures trading on the CME recorded a sharp and isolated jump in volume
* A similar pattern was observed in oil markets
* Roughly 15 minutes later, at 7:05 a.m., Trump posted a market-moving announcement about Iran on Truth Social
Trump’s intervention triggered the cost of oil to plunged around ten per cent and sharp rises in stock markets.
In his post, written all in capitals, the US president said: "I AM PLEASE TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST.
"BASED ON THE TENOR AND TONE OF THESE IN DEPTH, DETAILED, AND CONSTRUCTIVE CONVERSATIONS, WITCH WILL CONTINUE THROUGHOUT THE WEEK, I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO POSTPONE ANY AND ALL MILITARY STRIKES AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS....”
However, there was further market turmoil as the Foreign Ministry in Tehran denied that there had been any talks, even indirectly.
Since then it has emerged that Pakistan, Egypt and Turkey may have been seeking to broker talks between the US and Tehran which could happen within days as Iran and Israel traded new airstrikes in the fourth week of the conflict.
There is no suggestion of wrongdoing by Trump himself.
A White House spokesperson said: “The White House does not tolerate any administration official illegally profiteering off of insider knowledge, and any implication that officials are engaged in such activity without evidence is baseless and irresponsible reporting.”
On Tuesday, Brent crude futures were up 4.2% to $104.21 (£78) a barrel, reversing some of their 10% slide from Monday.
