CFTC probes abnormal oil futures trades before Trump Iran policy shift

According to sources, the top US derivatives regulator is investigating a series of unusually well-timed oil futures trades that occurred before Trump's recent shift in Iran war policy.

Sources said the CFTC is leading the investigation into oil futures trades on CME and ICE platforms. Both exchanges have been asked to submit relevant data.

Sources said the CFTC is examining at least two instances over about two weeks where trading volume suddenly surged before major policy announcements. The regulator has asked exchanges to provide data including "Tag 50" operator IDs, which identify the entities behind the trades.

The unusually large volume in recent weeks has raised concerns about possible misuse of material non-public information. At the start of the conflict, historic disruptions to Middle East oil shipments sent prices soaring. In subsequent weeks, prices have been volatile as markets speculate on when oil tanker traffic through the Strait of Hormuz might resume.

Two Democratic senators have urged the CFTC to investigate potential violations, increasing scrutiny of these unusually well-timed trades. The White House issued an internal memo last month warning staff not to use sensitive information to trade in financial markets or on event betting platforms.