British media: Oil price plunge sparks suspicion of "insider trading" in Middle East affairs

Xinhua News Agency, London, March 25 (Reporter Zhao Xiaona) According to a report by the Financial Times on the 24th, 15 minutes before U.S. President Trump posted on social media about U.S.-Iran dialogue on the 23rd, there was an unusual large transaction in the international crude oil market amounting to approximately $580 million, raising suspicions of “insider trading.”

The report stated that between 6:49 AM and 6:50 AM New York time on the 23rd, about 6,200 contracts of Brent crude oil and West Texas Intermediate crude oil futures changed hands. According to calculations by Bloomberg, the nominal value of these contracts reached $580 million. As the trading volume of crude oil futures surged suddenly, the S&P 500 index jumped sharply, with trading volume also significantly increasing.

The report noted that Trump subsequently posted at 7:04 AM stating, “Over the past two days, the United States and Iran have had very good and productive dialogue regarding a comprehensive solution to our hostile actions in the Middle East.” This news triggered a significant sell-off in the global energy market. As investors reduced their “bets” on the prolonged conflict, S&P 500 futures and European stock markets rose in tandem.

The report suggested that this type of “timely” trading is reminiscent of previous situations prior to U.S. attacks on Iran and Venezuela. Multiple hedge funds indicated that this is one of many instances of large pre-trading occurring before major announcements by U.S. officials in recent months.

The report cited a trader from a large hedge fund who said that energy consulting firms have recently noticed multiple unusually timed large transactions. Another investment manager stated that a series of timely large transactions has triggered “strong dissatisfaction” among investors.

According to the report, later on the 23rd, Iranian Islamic Parliament Speaker Ghalibaf posted on social media, explicitly denying that any negotiations exist between the U.S. and Iran. This statement immediately led to a pullback in global stock markets, while the energy market saw renewed buying interest.

Ghalibaf stated that spreading “false news aims to manipulate financial and oil markets, allowing the U.S. and Israel to escape their deep quagmire.” (End)