DOJ probes timed oil trades

Kim Khan· Host0:00

[instrumental music] Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Thursday, May seventh, and I'm your host, Kim Khan. Our top story so far: the Department of Justice, along with the Commodity Futures Trading Commission, is investigating a series of suspiciously timed oil trades that occurred just before major announcements tied to the Iran conflict, according to ABC News. Federal officials are reviewing at least four trades in which traders collectively wagered more than two point six billion dollars that oil prices would fall shortly before they did. The timeline includes March twenty-third, a five hundred million dollar short position placed fifteen minutes before President Trump announced a delay to threaten strikes on Iran's power grid. April seventh, a nine hundred and sixty million dollar bet placed hours before a temporary ceasefire announcement. April seventeenth, a seven hundred and sixty million dollar trade placed twenty minutes before Iran's foreign minister said the Strait of Hormuz was open. And April twenty-first, four hundred and thirty million dollars in bets placed fifteen minutes before Trump extended the ceasefire. Data from the London Stock Exchange Group does not identify the traders or prove insider activity occurred, ABC reported. Neither the DOJ nor CFTC commented. The investigation follows renewed scrutiny of oil markets, as you heard yesterday, after another crude short position was placed and drew attention ahead of diplomatic headlines. Among active stocks, McDonald's reported solid Q1 results, helped by its value offerings and the introduction of the higher-margin Big Arch burger.