This caused a sharp decline in Brent and WTI oil prices and fluctuations in stock market futures.
Traders executed half a billion dollars’ worth of transactions in the oil market just minutes before U.S. President Donald Trump posted about “productive” negotiations with Iran, leading to a significant drop in oil prices and volatility in other assets.
This was reported by RBC-Ukraine, citing a publication from the Financial Times.
Also read: Netanyahu discussed a potential deal with Trump regarding Iran
Large transactions before Trump’s post
On Monday, from 6:49 to 6:50 AM New York time, around 6,200 futures contracts for Brent and West Texas Intermediate were transferred to other market participants, with a total nominal value of approximately $580 million.
The transactions occurred just 15 minutes before the U.S. President published a message on the Truth Social platform about “productive negotiations” with Tehran regarding the cessation of the war in Iran.
During this time, trading volumes for Brent and WTI oil surged, and futures for the S&P 500 index also jumped immediately after the oil transactions. It remains unclear whether this was one organization or multiple participants.
Market reactions and consequences
Trump’s message at 7:04 AM triggered a sell-off in global energy markets and spikes in S&P 500 futures and European stocks, as investors reduced bets on a prolonged conflict.
Several hedge funds noted that this is one of many large transactions in recent months that occurred before official announcements from the U.S. government.
One trader remarked that the series of such timely operations raises eyebrows and reflects a “level of frustration” among investors.
He emphasized that for a Monday without significant economic data or speeches from Federal Reserve representatives, this is an unusually large transaction.
Official statements
White House spokesperson Kush Desai stated, “The sole aim of President Trump and his administration is to do what is best for the American people.”
He stressed that any insinuations of illegal insider trading without evidence are “baseless and irresponsible reporting.”
Later, Iranian Parliament Speaker Mohammad-Baqer Qalibaf denied negotiations with Washington, causing further fluctuations in global markets and increased buying in energy sectors.
Expert analysis
Tim Skirrow, head of the derivatives department at Energy Aspects, noted that trading volumes for Brent and WTI were higher than usual for this time of day.
He added that the futures and options markets observed a “significant influx” of funds from hedge funds, with nearly all positions being long, which he said set the stage for a sharp price movement.
We remind you that while oil prices continue to rise amid the situation with Iran, some EU countries have already resorted to radical measures—administrative restrictions on fuel sales.
It is noteworthy that U.S. President Donald Trump ordered a halt to strikes on Iran’s energy infrastructure following negotiations with Tehran, leading to a sharp decline in global oil prices.
