Just minutes before US President Donald Trump declared on Monday that the US would delay strikes against Iranian energy facilities, traders wagered hundreds of millions of dollars on oil contracts.
According to market data examined by the BBC, trading volume increased about fifteen minutes prior to the president’s announcement of the change on social media. Following the revelation, the price of oil plummeted, falling 14% in just a few minutes. Traders would have profited if they had placed a wager on the unexpected shift.
According to some market observers, the extraordinary activity suggests that the bets were placed with knowledge of the outcome. The White House has been approached by the BBC for comment. It did not “tolerate any administration official illegally profiteering off of insider knowledge,” a representative told the Financial Times.
The Middle East crisis has rocked the world’s financial markets, causing share prices to plummet as oil and gas prices skyrocket. However, on multiple occasions, optimism about a possible end to the conflict has caused erratic swings, with stock markets rising and oil prices falling significantly.
Trump vowed on Saturday to “obliterate” Iran’s power facilities if the country did not reopen the Strait of Hormuz within 48 hours. Approximately 20% of the world’s gas and oil typically transit through the Strait.
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