Traders Bet $760M on Falling Oil 20 Minutes Before Iran's Hormuz Strait Announcement

Gate News message, April 17 — Investors sold 7,990 lots of Brent crude futures between 1224 GMT and 1225 GMT on April 17, worth approximately $760 million, betting on falling oil prices. At 1245 GMT, Iran's foreign minister announced on X that passage for all commercial vessels through the Strait of Hormuz was declared completely open for the remaining period of ceasefire, in line with the ceasefire in Lebanon.

The announcement triggered a sharp decline in crude oil prices, with the commodity falling as much as 11 percent on the day in the minutes that followed. The well-timed trades have drawn scrutiny from U.S. lawmakers and legal experts, who have raised concerns that decisions around war and diplomacy may give certain traders an informational edge in volatile derivatives markets.

This incident is part of a pattern of large trades placed shortly before major policy announcements. On April 7, bets worth around $950 million were placed hours ahead of the U.S. and Iran announcing a two-week ceasefire. On March 23, investors sold $500 million in oil futures 15 minutes before U.S. President Donald Trump announced he would delay attacks on Iran's energy infrastructure, which triggered a 15 percent drop in crude prices. The U.S. Commodity Futures Trading Commission is investigating a series of oil futures trades, including those on March 23 and April 7, that were placed shortly before major policy shifts related to the war in Iran.