Rep. Ritchie Torres Requests Federal Probe into Oil and Equity Futures Trades Before Trump Iran Announcement

Rep. , sent a letter on Wednesday to Securities and Exchange Commission Chair Paul Atkins and Commodity Futures Trading Commission Chair Michael Selig, requesting a probe into suspicious trading in oil and equity futures markets. The trades took place in the minutes before President Donald Trump's announcement on March of a five-day delay in attacks on Iran's energy infrastructure.

The letter, first reported by CNBC, addresses reports of irregular and well-timed trades ahead of the announcement made via Truth Social. According to Reuters, more than $500 million in crude oil futures trades occurred in the roughly 15 minutes before the announcement.

The New Yorker reported an abnormal surge in futures trading volume in the immediate lead-up, with trades predicting a decline in oil prices and a rebound in equity markets.

m. without a hedge. " — Rep. Ritchie Torres (CNBC) Torres stated in the letter that the occurrence may constitute one of the largest instances of insider trading in history. He called on the SEC to open a formal investigation and, in consultation with the CFTC, obtain comprehensive trading records.

A spokesperson for the SEC declined to comment on Wednesday, and the CFTC did not immediately respond to a request for comment.

This request marks the second time in several months that Torres, a member of the House Financial Services Committee, has raised issues of potential insider trading linked to Trump administration actions.

In January, Torres introduced legislation following a well-timed bet on the prediction market platform Polymarket in the hours before the ouster of Venezuelan President Nicolás Maduro, which resulted in a $400,000 payout. The legislation would prohibit federal elected officials, congressional staff, political appointees, and executive branch officials from buying or selling event contracts based on government policy, actions, or political outcomes if they possess material nonpublic information.

The bill has 42 Democratic cosponsors but faces challenges in the Republican-controlled House.

Separately, a group of House Democrats, led by Reps. Seth Moulton and Jim McGovern of Massachusetts, sent a letter on Monday to CFTC Chair Selig questioning the agency's regulation of event bets on offshore prediction markets like Polymarket. S.

government actions, including military intervention in Venezuela and the attack on Iran.

The March announcement by Trump paused hostilities with Iran, affecting global energy markets and equity trading.

Such trading patterns raise questions about market integrity and access to nonpublic information. Regulators' responses could influence oversight of futures and prediction markets, impacting traders, investors, and government accountability measures.

The SEC recently appointed David Woodcock, a former agency official and Gibson Dunn lawyer, as its next enforcement director, as reported by Reuters on Wednesday.