$760 Million Oil Shorts Placed Minutes Before Hormuz Announcement (Report)
TL;DR
US President Trump announced the reopening of the Strait of Hormuz, causing oil prices to plunge over 11%. Traders placed $760 million in short positions just minutes before the announcement.
Key points
- Trump announced reopening of the Strait of Hormuz
- Oil prices dropped over 11% following the announcement
- Traders placed $760 million in short positions before the announcement
- USOIL fell to a five-week low of under $80 per barrel
- 7,900 lots of Brent crude futures were sold just before the statement
US President Trump, alongside Iran’s foreign minister, announced a major de-escalation yesterday on the war front, indicating that the Strait of Hormuz will finally be reopened.
The statement had a major impact on almost all financial markets, especially oil, given the Strait’s significance.
USOIL, for example, plunged by over 11%. It traded at $90 per barrel before the announcement, but dumped to a five-week low of under $80 within minutes.
As with many previous such major statements, reports emerged that traders had placed big orders just minutes before the announcement went live.
According to Reuters, investors shorted oil prices with a $760 million position 20 minutes before the statement on Friday. Between 12:24 GMT and 12:25 GMT, they sold a combined 7,900 lots of Brent crude futures, according to LSEG data.
Iran’s foreign minister posted on X at 12:45 GMT that the passage for all commercial vessels through the Strait was reopened completely for the remaining period of the ceasefire.
Recall that there have been several similar instances in the past few years, especially when it comes to the Middle East. For instance, one account was linked to numerous traders dating back to 2024, as it placed trades with a 100% win rate, betting on Israel’s military actions against other nations in the region.
$760M short on oil: Placed 20 minutes before the Hormuz announcement.
This is the 3rd time.
– March 23: $500M short, 15 minutes before Trump delayed Iran strikes. Oil dropped 15%.
– April 7: $950M short, hours before the US-Iran ceasefire.
Who knew again? pic.twitter.com/npKMh5nvDf
— Crypto Rover (@cryptorover) April 18, 2026
Aside from the oil’s crashing price yesterday, most other financial assets skyrocketed. Bitcoin tapped a ten-week peak at over $78,000 after the de-escalation, but its run could be in danger as Iran denied many of Trump’s other claims.
Q&A
What caused the oil price drop after the Hormuz announcement?
The announcement by US President Trump regarding the reopening of the Strait of Hormuz led to a significant drop in oil prices, with USOIL falling from $90 to under $80 per barrel.
How much money was shorted in oil just before the announcement?
Traders shorted oil prices with a position of $760 million just 20 minutes before the announcement was made.
What were the trading details for Brent crude futures before the announcement?
Investors sold a combined 7,900 lots of Brent crude futures between 12:24 GMT and 12:25 GMT, right before the major announcement.
