British Media: Oil Price Plunge Triggers "Insider Trading" Suspicions in Middle East Situation

Xinhua News Agency, London, March 25 (Reporter Zhao Xiaona) — According to The Financial Times of the UK on the 24th, about 15 minutes before U.S. President Trump posted a tweet about U.S.-Iran talks on social media on the 23rd, the international crude oil market experienced an abnormal large transaction worth approximately $580 million, sparking speculation about “insider trading.”

The report states that between 6:49 and 6:50 a.m. New York time on the 23rd, approximately 6,200 Brent crude and West Texas Intermediate futures contracts were traded. According to Bloomberg data, these contracts had a nominal value of $580 million. As crude oil futures trading volume suddenly surged, the S&P 500 stock index jumped instantly, with trading volume also significantly increasing.

The report says that Trump later posted a tweet at 7:04 a.m. stating, “Over the past two days, the United States and Iran have had very good and productive discussions on a comprehensive and thorough solution to our hostile actions in the Middle East.” This news triggered a sharp sell-off in global energy markets. As investors reduced their bets on prolonged conflict, S&P 500 futures and European stock markets moved higher in sync.

The report believes that such “timing-precise” trades are “eerily similar” to previous cases when the U.S. attacked Iran or Venezuela. Several hedge funds stated that this is one of many cases in recent months where large pre-trade transactions occurred before major announcements by U.S. officials.

Citing a senior trader at a large hedge fund, the report says that energy consulting firms have recently noticed multiple large transactions with unusual timing. Another investment manager said that a series of precisely timed large trades have caused “strong dissatisfaction” among investors.

According to the report, later on the evening of the 23rd, Iran’s Islamic Parliament Speaker, Ali Larijani, posted on social media denying any negotiations between the U.S. and Iran. This statement immediately caused global stock markets to retreat, while energy markets saw renewed buying.

Larijani said that spreading “false news aims to manipulate financial and oil markets to help the U.S. and Israel escape their deep quagmire.” (End)