Rep. Ritchie Torres Calls on SEC and CFTC to Investigate $950 Million Oil Futures Trade Ahead of U.S.-Iran Ceasefire

Torres urges joint federal investigation into potential insider trading on sensitive diplomatic information

WASHINGTON, D.C. — Today, Congressman Ritchie Torres (NY-15) sent a letter to Securities and Exchange Commission Chair Paul Atkins and Commodity Futures Trading Commission Chair Michael Selig calling for an immediate joint investigation into highly unusual trading activity in crude oil futures markets that occurred in the hours before the public announcement of a ceasefire between the United States and Iran. 

Reuters first reported that traders placed an approximately $950 million bet on declining oil prices shortly before the ceasefire was made public, a development that predictably and materially impacted energy markets.

The full letter reads (PDF attached):

“I write to express serious concern regarding reports of highly unusual trading activity in crude oil futures markets in the hours immediately preceding the public announcement of a ceasefire between the United States and Iran. According to multiple credible press accounts, traders placed an approximately $950 million bet on declining oil prices shortly before the ceasefire became public, raising questions about potential insider trading and market integrity.

“If accurate, the timing and scale of these trades warrant immediate scrutiny. Markets function on the foundational premise that all participants operate on a level playing field, free from the corrosive effects of material nonpublic information being exploited for private gain. When that premise is undermined, particularly in markets as systemically important as energy futures, the consequences extend far beyond individual transactions. They erode public trust, distort price discovery, and threaten the credibility of the financial system itself.

“The reported trades appear to have been executed mere hours before a geopolitical development that predictably and materially impacted oil prices. Such proximity raises the possibility that certain market participants may have had advance knowledge of the ceasefire announcement. If so, this would represent not only a violation of the law but a fundamental breach of the public’s trust in the fairness of U.S. markets.

“Accordingly, I urge the Securities and Exchange Commission and the Commodity Futures Trading Commission to:

“1. Open a joint investigation into the reported trading activity, including identifying the entities and individuals responsible for the transactions and determining whether any possessed material nonpublic information.

“2. Assess potential violations of federal securities and commodities laws, including insider trading, market manipulation, or any misuse of confidential government or diplomatic information.

“3. Coordinate with relevant agencies, including the Department of Justice and appropriate national security entities, to evaluate whether any leaks of sensitive information occurred and whether additional safeguards are necessary.

“4. Provide transparency to the public, including updates on investigative findings, to preserve confidence in the integrity of U.S. markets.

“It strikes at the heart of whether our markets reward insight or instead privilege access and secrecy. In a moment when public confidence in the fairness of our markets is eroding, regulators must act with both urgency and transparency.

“Thank you for your attention to this matter. I look forward to your response.”

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