- Repeated pre-announcement trades precede major policy updates on the US-Iran conflict.
- $760M oil shorts placed minutes before Hormuz reopening announcement, raising timing concerns.
- Oil drops to $83.99 as reopening signals ease in global supply disruptions.
A pattern of well-timed oil trades ahead of major geopolitical announcements is drawing increasing scrutiny in energy markets. On April 7, traders built a roughly $950 million short position in oil futures shortly before news of a two-week ceasefire between the United States and Iran.
Earlier, on March 23, another $500 million short position was placed approximately 15 minutes before U.S. President Donald Trump announced a pause in potential strikes on Iran’s energy infrastructure, a move that was followed by a 15% drop in oil prices.
A similar move occurred in the latest instance. Investors opened short positions of around 7,990 Brent crude oil futures contracts, valued at roughly $760 million, about 20 minutes before an announcement confirmed that the Strait of Hormuz had reopened to commercial shipping.
The announcement followed comments from Iranian Foreign Minister Abbas Araghchi, who stated that the Strait of Hormuz was “completely open” for commercial vessels during the remaining period of a ceasefire. The statement was later publicly acknowledged by U.S. President Donald Trump.
The timing of these trades has not gone unnoticed. The U.S. Commodity Futures Trading Commission is now reviewing the March 23 and April 7 transactions, both of which were executed shortly before major policy updates tied to the Iran situation.
Market Reaction to Strait Reopening
Energy markets responded immediately after confirmation that the Strait of Hormuz had reopened. Oil and European natural gas prices declined as expectations grew that disruptions to global supply could ease.
In addition, the reopening follows a period of heightened tension that began on Feb. 28, when U.S. and Israeli airstrikes targeted Iran. In response, Iran closed the Strait and launched missile and drone attacks targeting Israel and U.S. bases. Several major shipping firms, including Maersk, CMA CGM, and Hapag-Lloyd, halted transit operations during the escalation.
Oil Price Movement
At the time of writing, West Texas Intermediate crude oil recorded a price decline. The prices fell to $83.99 per barrel, marking a drop of $9.19, or 9.86%, by the close. Intraday data shows prices holding above $90 earlier in the session before entering a downward trend.
Selling pressure grew in the afternoon, pushing prices below $82. Although the market later settled between $82 and $84, the session closed in the red, reflecting continued volatility amid geopolitical developments.
Despite the Oil price decline, the crypto market saw a surge, with Bitcoin rising 0.91% to $76,583.02 at the time of writing. Ethereum also followed a similar trend, trading at $2,374.30 and recording an increase of 0.82% over the past 24 hours.
Related: Iran Restricts Hormuz Again as Trump Maintains Blockade
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