Traders have intensified bearish bets on oil prices, with nearly $1 billion funneled into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO) in anticipation of falling prices following a recent ceasefire announcement by President Trump. This shift in sentiment coincided with a significant drop in oil prices, which fell nearly $20 per barrel from recent highs. However, new reports suggest that some traders may have exploited insider information related to military actions in the Iran conflict, raising serious concerns about potential insider trading.

Suspicious trading patterns emerged around key developments in the Iran-U.S. war, with over $1 billion placed on prediction markets just before major airstrikes. Notably, a trader reportedly turned an $87,000 investment into over $500,000 shortly before news broke of U.S.-Israeli strikes. The Commodity Futures Trading Commission (CFTC) is now reviewing these trades amid allegations of insider knowledge influencing market movements.

This situation highlights the growing risks of “shadow trading” in online prediction markets, where individuals with access to non-public information can capitalize on geopolitical events. As regulatory scrutiny increases, market participants should be vigilant about the implications of these developments on oil price volatility and broader market integrity.

Source: oilprice.com