Washington: Two senior US lawmakers have called for a federal investigation into suspicious oil futures trading that took place shortly before major announcements by Donald Trump regarding the Iran conflict, raising concerns over possible insider trading.
Senators Elizabeth Warren and Sheldon Whitehouse have formally urged the Commodity Futures Trading Commission (CFTC) to probe unusual trading patterns observed on March 23 and April 7.
Suspicious trades before major announcements
According to the senators, there was a clear pattern of large, well-timed trades placed just before market-moving announcements by the US President.
On April 7, traders reportedly placed bets worth approximately $950 million on falling oil prices just hours before Trump announced a two-week ceasefire with Iran. The announcement triggered a sharp fall in crude oil prices, which dropped nearly 15 per cent.
A similar pattern was observed earlier on March 23, when over $500 million worth of oil futures were traded minutes before Trump announced efforts to de-escalate tensions with Iran. Notably, there was no publicly available information at the time that could explain such heavy trading activity.
Concerns over insider trading
In their letter to the CFTC, the senators said the repeated timing of these trades raises “serious questions” about whether non-public government information was used for financial gain.
They warned that such activity could indicate misuse of confidential information by individuals either within or outside the government. If proven, this would constitute a serious breach of market regulations and ethical standards.
Senator Warren, who serves as the top Democrat on the Senate Banking Committee, emphasised that such incidents could undermine public trust in financial markets and governance systems.
Calls for wider investigation
The issue has also drawn attention from other US lawmakers. Congressman Ritchie Torres has separately written to both the Securities and Exchange Commission (SEC) and the CFTC, demanding a full investigation into the trades.
Torres questioned how traders could place such massive bets shortly before major announcements without hedging risks, suggesting that the likelihood of coincidence is extremely low.
Regulators have already acknowledged unusual activity in oil futures markets. However, no official findings or conclusions have been released so far.
Market impact and global context
The timing of the trades is particularly significant given the geopolitical backdrop. The US-Iran conflict has caused extreme volatility in global oil markets, with prices reacting sharply to policy announcements.
Following the ceasefire announcement, oil prices dropped below $100 per barrel, reflecting market expectations of improved supply conditions and reduced geopolitical risk.
Analysts note that such high-value trades are typically executed in smaller portions to avoid disrupting markets, making the large, concentrated bets even more unusual.
What happens next
The senators have asked the CFTC to provide written responses by April 30, 2026, outlining whether an investigation has been initiated and what steps will be taken.
The controversy has also raised broader concerns about the safeguarding of sensitive government information and the potential for its misuse in financial markets.
Conclusion
The $950 million oil trade placed ahead of a major geopolitical announcement has triggered serious questions about market fairness and transparency. As pressure mounts on US regulators to act, the outcome of the investigation could have far-reaching implications for market integrity and oversight.