Financial Wire

CFTC Reportedly Probes Oil Futures Trades Timed Ahead of Iran-Related Policy Moves

-- The US Commodity Futures Trading Commission is investigating a series of oil futures trades executed shortly before major US policy developments tied to President Donald Trump's handling of the Iran conflict, news outlets reported on Wednesday.

The inquiry is reportedly examining trading activity in crude oil futures on exchanges operated by CME Group (CME) and Intercontinental Exchange (ICE), focusing on at least two instances on Mar. 23 and Apr. 7.

Investigators have requested exchange records, including so-called "Tag 50" identifiers that can reveal the entities behind the trades, the reports said.

The scrutiny follows concerns raised by market participants and at least two Democratic senators that the unusually well-timed trades may have generated significant profits and could indicate the use of non-public information.

The CFTC, CME, ICE and the White House did not immediately respond to requests for comment from.

On Mar. 23, oil and stock futures worth billions of dollars were traded 15 minutes before Trump said previously threatened strikes on Iranian energy infrastructure would be delayed.

Last week, investors placed roughly $950 million in bullish oil positions hours before the US and Iran announced a ceasefire, the reports said.

The White House is reported to have previously cautioned staff against using sensitive government information for personal trading in futures markets during the ongoing Iran conflict.

Last month, the CFTC's enforcement director said the agency was monitoring potential market misconduct and manipulation in energy markets and was aware of recent speculation about insider trading in CFTC-regulated products.

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