Rep. Ritchie Torres Calls on CFTC to Investigate $760 Million Oil Futures Trade Placed Minutes Before Iran’s Strait of Hormuz Announcement

WASHINGTON, D.C. — Late Friday afternoon, Congressman Ritchie Torres (NY-15) sent a letter to Commodity Futures Trading Commission Chairman Michael Selig demanding the agency expand its ongoing investigation into suspicious oil futures trading to include a $760 million bet on falling oil prices placed approximately twenty minutes before Iran’s foreign minister publicly announced that the Strait of Hormuz would be open to commercial vessels.

The April 17 announcement triggered an immediate market reaction, with crude oil prices falling as much as 11 percent within minutes.

This is not an isolated incident. Rep. Torres’s letter documents a pattern of massive, suspiciously well-timed trades preceding major geopolitical announcements, including a $950 million bet placed ahead of a U.S.-Iran ceasefire announcement and a $500 million position placed minutes before President Trump announced a delay in military action against Iran. Each trade preceded a major market-moving event by minutes.

The CFTC is already investigating trades tied to the March 23 and April 7 announcements. Rep. Torres is demanding the agency expand that probe to include the April 17 trade and assess whether U.S. persons, including government officials or people in the President’s orbit, had advance knowledge of sensitive diplomatic developments and traded on that information.

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 significant and well-timed $760 million trade placed shortly before a market-moving announcement by Iranian officials regarding the Strait of Hormuz.

“According to recent reporting, investors executed a roughly $760 million bet on falling oil prices approximately twenty minutes before Iran’s foreign minister publicly announced that the Strait of Hormuz would be fully open to commercial vessels. This announcement triggered an immediate market reaction, with crude oil prices falling by as much as 11 percent within minutes.

“This latest episode is not isolated. In recent weeks, markets have seen multiple large, well-timed trades placed shortly before major geopolitical developments, including a $950 million bet ahead of a U.S.-Iran ceasefire announcement and a $500 million position placed minutes before a presidential decision to delay military action. These repeated instances raise serious concerns about whether certain market participants are gaining access to material nonpublic information related to sensitive diplomatic or military developments.

“While the announcement in this instance originated from Iranian officials, it is reasonable to question whether individuals within the U.S. government, including the White House, had advance awareness of these developments prior to their public disclosure. Given the level of coordination often required in matters involving ceasefires, maritime access, and regional stability, the possibility that such information may have been known, shared, or indirectly signaled before public release cannot be ignored.

“This pattern of trading activity raises profound concerns about potential insider trading, unlawful tipping, or other forms of market manipulation in derivatives markets that are highly sensitive to geopolitical events.

“Accordingly, I respectfully request that the CFTC:

1. Expand its ongoing investigation to include this most recent $760 million oil futures trade and any related trading activity preceding the Strait of Hormuz announcement;
2. Assess whether any U.S. persons, including government officials or affiliated individuals, had advance knowledge of the announcement and engaged in or facilitated trading based on that information;
3. Coordinate with relevant agencies to determine whether any material nonpublic information was improperly disclosed; and
4. Provide a timely public update on the status of this investigation to ensure transparency and maintain confidence in the integrity of U.S. financial markets.

“Financial markets function on the premise that all participants operate on a level playing field. When trades of this magnitude consistently precede major geopolitical announcements, the appearance of unfair advantage threatens to undermine confidence in both our markets and our institutions.

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

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