Crude Oil Futures Slide 12% After $760M Selloff Ahead of Hormuz Opening
Investors sold 7,990 Brent crude futures lots worth $760 million just before Iran declared the Strait of Hormuz open, triggering U.S. crude to plunge 12% to near $83 and Brent to slide 10% to around $89 per barrel. That follows prior $950 million and $500 million selloffs before earlier ceasefires.
1. Massive Pre-Announcement Selloff
Between 12:24 and 12:25 GMT, investors offloaded 7,990 lots of Brent crude futures valued at about $760 million, executing large bearish wagers just before Iran’s foreign minister declared the Strait of Hormuz open.
2. Sharp Price Declines
The selloff propelled U.S. crude prices down 12% to roughly $83 per barrel and drove Brent crude over 10% lower to about $89, as traders reacted to both the strategic bets and geopolitical developments.
3. Pattern of Strategic Bets
This event adds to a sequence of sizeable pre-announcement trades, including $950 million placed before a two-week ceasefire announcement on April 7 and $500 million sold ahead of delayed strike declarations on March 23.
4. Implications of Hormuz Reopening
The Strait’s reopening under a 10-day ceasefire eases near-term supply concerns, yet raises scrutiny over the timing of heavy oil derivatives trades and potential advantages in volatile markets.