Rep. Ritchie Torres Calls on CFTC to Expand Investigation to Include $430 Million Oil Futures Trade Placed Minutes Before Trump’s Ceasefire Extension

WASHINGTON, D.C. – Today, Congressman Ritchie Torres (NY-15) sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael Selig calling on the agency to expand its ongoing investigation into suspicious oil futures trading to include a $430 million bet on declining crude oil prices placed just minutes before President Trump publicly announced an indefinite extension of the U.S.-Iran ceasefire.

According to Reuters, traders executed approximately 4,260 lots of sell-side positions in Brent crude futures between 19:54 and 19:56 GMT on April 21, during post-settlement hours, when trading volumes are typically limited. At 20:10 GMT, the President announced the ceasefire extension, sending Brent crude prices sharply lower.

Rep. Torres’s letter documents a pattern of massive, precisely timed trades preceding major geopolitical announcements that the Congressman has previously written to the agency regarding: a $500 million position placed before a March 23 announcement delaying military action; a $950 million trade ahead of the April 7 ceasefire announcement; a $760 million position before an April 17 announcement on the reopening of the Strait of Hormuz; and now the April 21 trade. April’s trades alone total approximately $2.1 billion in estimated exposure.

Rep. Torres is calling on the CFTC to expand its existing investigation, assess whether U.S. persons with access to policymaking had advance knowledge of the ceasefire extension, coordinate with the Department of Justice and national security agencies, and provide a timely public update on its findings.

The full letter reads (PDF attached):

“I write to request that the Commodity Futures Trading Commission (CFTC) immediately expand its ongoing investigation into suspicious trading activity in oil futures markets to include a $430 million bet on declining crude oil prices placed just minutes before a market-moving announcement by the President of the United States.

“According to reporting, traders executed approximately 4,260 lots of sell-side positions in Brent crude futures between 19:54 and 19:56 GMT on April 21, during post-settlement hours, when trading volumes are typically limited, amounting to roughly $430 million in notional exposure. The timing is striking. At 20:10 GMT, the President publicly announced an indefinite extension of the U.S.-Iran ceasefire, a development with immediate implications for global oil supply expectations. In the minute following the announcement, Brent crude prices dropped sharply, reaching a low of approximately $96.83 per barrel.

“This episode is not an isolated occurrence. Rather, it is part of a broader and deeply concerning pattern. As detailed in recent reporting, there have now been multiple instances in which large, precisely timed bets on oil prices were placed shortly before significant geopolitical announcements related to the Iran conflict. These include: a $500 million position placed minutes before a March 23 announcement delaying military action; a $950 million trade preceding an April 7 ceasefire announcement; a $760 million position ahead of an April 17 announcement regarding the reopening of the Strait of Hormuz; and now, the April 21 trade at issue. Collectively, April’s trades alone total approximately $2.1 billion in estimated exposure.

“The consistency, scale, and timing of these trades raise serious concerns that certain market participants may be acting on material nonpublic information related to sensitive U.S. foreign policy and national security decisions. Markets for energy derivatives are highly responsive to geopolitical developments, and even the perception that such markets are vulnerable to insider trading, unlawful tipping, or coordinated manipulation undermines public confidence in their integrity.

“Given the CFTC’s ongoing investigation into earlier trades in this pattern, the April 21 transaction warrants immediate scrutiny. Accordingly, I respectfully request that the Commission:

1. Expand its existing investigation to include the April 21 oil futures trades and any related activity;
2. Assess whether any U.S. persons, including government officials or individuals with access to policymaking processes, had advance knowledge of the ceasefire extension and traded, or facilitated trading, on that information;
3. Coordinate with the Department of Justice and appropriate national security agencies to determine whether material nonpublic information was improperly disclosed; and
4. Provide a timely public update on the status of this investigation to promote transparency and reinforce confidence in U.S. financial markets.

“Financial markets function on the fundamental premise that all participants operate on a level playing field. A repeated pattern of massive, well-timed trades immediately preceding major geopolitical announcements is not easily explained by chance. It is a pattern that demands careful examination and, if warranted, accountability.

“I appreciate your prompt attention to this matter and look forward to your response.”

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