A report that Iran and the US were inching closer to a peace deal sent oil prices plunging and stock indexes soaring, as some traders claimed that the false starts were starting to smell of market manipulation.
A report by Axios published on Wednesday said the two countries were closing in on “a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations”, amid the US-Israeli war on Iran.
Brent crude dropped from $108 per barrel to $97 after the report, before regaining some ground. The international benchmark was still down around seven percent at roughly $102 per barrel.
Just 70 minutes before the Axios report dropped, nearly $920m was wagered on crude oil short positions, Unusual Whales posted on X. The social media account spotlights activity with hallmarks of potential insider trading.
The holder of the short position would have gained an estimated $125m, Unusual Whales said.
