A noticeable move in the futures markets sparked widespread controversy about the possibility of exploiting secret information within the White House to achieve financial gains, especially after huge bets preceded political decisions taken by US President Donald Trump regarding Iran.
The White House sent an email warning to its staff on March 24, warning them against illegally abusing their positions to bet in futures markets, a US official said, one day after Trump decided to suspend some strikes against Iran.
This warning coincided with questions raised by experts about whether sensitive information had been leaked before it was announced, due to bets that preceded important political decisions.
Stock exchange data and Reuters calculations showed that one or more traders bet about $500 million on Brent and West Texas Intermediate crude futures within one minute, shortly before Trump announced on March 23 that he would postpone attacks on Iranian energy infrastructure for five days, which led to a 15 percent drop in oil prices.
White House spokesman Davis Engel told Reuters, “Trump wants a strong, profitable stock market for everyone, but members of Congress and other government officials should be prevented from using nonpublic information for financial gain.”
According to the Wall Street Journal, the warning was sent to all employees via a letter from the White House Office of Management.
Observers and members of Congress, including Senator Chris Murphy, considered that the accuracy of the timing clearly raised doubts about the possibility of insider trading.
These events revived the hypothesis that information was leaked from within the White House or from the administration’s inner circle, allowing unknown investors to achieve large profits in a short time.
