Investors bet $760 million on oil before Iran announcement
Traders placed a $760 million bet on falling oil prices just before Iran announced the Strait of Hormuz was open. The CFTC is now investigating these trades.
Investors executed a massive trade worth approximately $760 million betting on a decline in oil prices just 20 minutes before a critical announcement regarding the Strait of Hormuz. Between 12:24 GMT and 12:25 GMT, market participants sold a combined 7,990 lots of Brent Crude Oil futures, according to data from LSEG. This move preceded a significant diplomatic update that sent shockwaves through the energy markets.
At 12:45 GMT, the foreign minister of Iran announced on the social media platform X that the Strait of Hormuz was declared completely open for all commercial vessels for the remainder of the ceasefire period. The announcement immediately impacted the market, pushing crude prices down by as much as 11% in the minutes that followed. This event marks the latest in a series of large, well-timed trades that have occurred shortly before major geopolitical developments.
