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    3. Trump Admin's $950 Million Bet on Oil Price Plunge Before Ceasefire Turned Crude Market into Insider Trading Heaven

    Trump Admin's $950 Million Bet on Oil Price Plunge Before Ceasefire Turned Crude Market into Insider Trading Heaven

    By: blockbeats|2026/04/09 05:55:11
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    On Tuesday, April 7, 2026, at 19:45 GMT, just under three hours from when Trump announced the U.S.-Iran "two-week ceasefire" on Truth Social, a London trader was logging off while Asian traders were not yet in. Typically, only a few hundred contracts of crude oil futures would change hands in a minute during this lull period. However, during this hour, someone unloaded approximately 6,200 lots of Brent crude oil and 2,400 lots of WTI crude oil futures in quick succession, totaling 8,600 lots with a notional value of around $950 million.

    The next day, as the Asian session opened, crude oil prices plummeted by about 15%, with WTI dropping below $100. According to Reuters citing LSEG's transaction data, the scale of this short position was "entirely atypical for that time window." Congressman Ritchie Torres penned a letter to the U.S. SEC and CFTC on April 8, requesting an investigation.

    This wasn't the first time. More precisely, it was the second recorded instance of the same "playbook" amid the U.S.-Iran conflict.

    The same trading signature, hitting the mark twice

    The earlier instance on Monday morning, March 22, 2026, didn't gain the same notoriety as the April 7 event because it didn't cause a significant price drop. However, structurally, it was the prototype of this "playbook." As per CBS News and Financial Times-cited trading data, between 6:49 and 6:50 Eastern Time, or 10:49 GMT, a total of 6,200 lots of Brent and WTI futures were traded, amounting to around $580 million.

    Fifteen minutes later, Trump posted on Truth Social, stating he was engaged in "constructive dialogue" with Iran and postponing the planned strike on Iranian energy facilities by five days. Crude oil prices plunged that day, the S&P 500 surged, and the Dow gained over 1,000 points in a single day.

    Trump Admin's $950 Million Bet on Oil Price Plunge Before Ceasefire Turned Crude Market into Insider Trading Heaven

    Aligning the timelines of these two events reveals a detail: the "Brent leg" within that 8,600-lot position on April 7 was also exactly 6,200 lots. The repetition of the same number in two entirely different time frames could be a coincidence or an indication of identical position sizing. In trading circles, this type of repetition is called a "signature," referring to a group of traders following a predetermined formula. CBS's report cited two unnamed former CFTC investigators stating that this precise repetition "itself is an investigative signal."

    9x the Norm, Happening in an Hour No One Was Watching

    Many of the first readers who saw this news thought 19:45 GMT was a "closed market period." It was not. Brent crude oil futures trade almost 24 hours electronically, with only a brief shutdown on weekends. 19:45 GMT marks a more subtle moment. The previous minute (19:28 to 19:30 London time) had just concluded the day's "settlement window," the two minutes the exchange uses to determine the official daily settlement price.

    As soon as the settlement window closes, most European professional traders are off work. The Asian trading desks in Tokyo and Singapore won't come online for several hours. This one-hour period is usually one of the least liquid windows of the day. According to ICE's official product specs, Brent's true peak trading volume occurs during the European day session.

    If we zoom in on the anomaly of that minute on March 22 and compare, the difference becomes more apparent. According to CBS citing LSEG trade details, the normal trading volume for each minute around that time for the previous and following five days was about 700 contracts. That minute saw 6,200 contracts traded, nearly 9 times the usual amount. The blue bar in the chart represents that minute, while the other gray bars before and after are from the same hour, densely packed at the bottom.

    The significance of this comparison is that the 9x surge did not happen during the most liquid trading hours but was concentrated in the thinnest minute of the order book. When writing about this on his Substack, Paul Krugman used a metaphor, saying it was like "honking your horn with no one around on a deserted street at night," either not caring if anyone hears or having a specific reason for acting at that moment.

    Three Consistent Trades

    This chart shows the other half of the anomaly on March 22 that many reports overlooked. In follow-up articles at the end of March, the Financial Times and Peak Oil mentioned that during the same period as the $580 million crude oil short, there were two other consistent trades: a buy order of approximately $1.5 billion in S&P 500 E-mini futures and an independent short of $192 million on WTI (CL contract).

    The "S&P 500 E-mini futures" are the most active stock index futures contract on the exchange, with one contract equating to around $250,000 worth of the S&P 500 index. It is a standard tool for institutions to hedge against the overall direction of the US stock market. "Buying E-mini" is a bet on the US stock market's rise. The "WTI specific short" is an additional short position taken on another futures product line for crude oil (WTI traded in the US). Together, these three trades amounted to a nominal value of around $2.28 billion.

    Looking at these three trades together, they appear more like a paired trade, betting on the same macro scenario, which is the easing of US-Iran tensions. How would easing affect the market? The oil supply panic subsides, leading to a fall in oil prices. Geopolitical risk premium diminishes, resulting in a stock market rebound. Combining these three positions creates the cleanest profit combination in this scenario. To paraphrase Paul Krugman, "If you know you will see the words 'constructive dialogue' two hours later, these are the three trades you would make."

    -- Price

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    The Same Script, Also Seen in Prediction Markets

    Shifting focus from the futures market to the crypto world's prediction market Polymarket reveals an almost identical mirror image.

    Polymarket is a binary prediction market platform built on Ethereum, where users bet on whether an event will occur, with odds determined by market participants themselves. After the event's outcome is confirmed, winners receive a payout. All its transactions are on-chain, and anyone can view the history of each wallet.

    According to on-chain data cited by StockTwits, in the final week of the "Will there be a ceasefire between the US and Iran within 30 days on Polymarket" contract, there were 8 accounts with a "normal profile," all being publicly known old accounts, collectively wagering around $70,000. There were wins and losses, and the settlement process had no suspicious points. However, at the same time, 4 other accounts had completely different profiles. These 4 wallets were newly created just before the event, with no prior on-chain transaction history. Their first action upon entry was to heavily bet on "there will be a ceasefire" at very low odds, and in the end, they all won, collectively making over $600,000 in profit.

    From $70,000 to $600,000, the multiplier in between is 8.6 times, with the latter's profit being nearly nine times the total amount wagered by the former. According to Polymarket's own settlement rules, the winner's amount = bet amount × reciprocal of odds. To earn $600,000 in a week, these 4 wallets either placed a heavy bet at a very low odds point (indicating a high market belief in "no ceasefire"), or they diversified their bets multiple times, with on-chain data indicating the former.

    Ritchie Torres's office mentioned this detail in a letter to the SEC and CFTC, aligning it with the anomalous behavior in crude oil futures as evidence of a "cross-market synchronous signal." This is why Torres already introduced legislation against insider trading in prediction markets around the end of March. For him, the crude oil futures side was not an isolated incident.

    Will There Really Be an Investigation?

    Let's first examine the reality at the federal level. According to the SEC's Enforcement Report for FY 2025 released in early April, the past year saw 313 new SEC enforcement actions, the lowest point in the past decade, a 27% decrease from the 583 cases in FY 2024. On the CFTC side, there was no simultaneous release of an equivalent annual report, but in early April, the law firms Sullivan & Cromwell and Skadden, which track CFTC enforcement trends, noted in their comments that the CFTC's enforcement division had significantly slowed down at the beginning of 2025.

    However, just about a week before Torres wrote his letter, the CFTC had announced the 5 key enforcement priorities for FY 2026. According to Sullivan & Cromwell's analysis, the top priority is "Insider Trading, including Market Manipulation," and the second is "Market Manipulation, particularly in the energy markets."

    The subtlety here lies in the fact that the CFTC itself verbally placed this issue at the top priority, but historically, the CFTC has initiated very few cases of the type of "single unusual trade" in the futures markets. The significant energy market cases that have been successfully prosecuted in the past, such as the penalties against Trafigura, Freepoint, and TotalEnergies in 2024, were all off-exchange long-term manipulation cases with a duration of 2 to 4 years, not targeting a one-time abnormal short position on the market.

    Another line of investigation that could potentially yield results is related to the actions of New York State Attorney General Letitia James. Starting in April 2025, she has been using New York's Martin Act to track a series of "timely, high-return trades related to public statements by Trump."

    The Martin Act is New York's securities anti-fraud law, and it has a key feature that federal law lacks: the prosecution does not need to prove that the defendant subjectively intended to defraud, but only that the trading behavior itself objectively exhibits fraudulent characteristics, in order to bring charges. For events like "precise lurking," proving subjective intent is precisely the most challenging aspect in federal insider trading cases.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

    The same trading signature, hitting the mark twice
    9x the Norm, Happening in an Hour No One Was Watching
    Three Consistent Trades
    green-metaverse-token
    The Same Script, Also Seen in Prediction Markets
    Will There Really Be an Investigation?

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