【Iran Crisis】Multiple Exchanges Oppose US Intervention in Oil Market　CME CEO Warns: Could Trigger an "Epic Disaster"

Foreign media reports that CME Group, the world’s largest futures exchange operator, has issued a stern warning to the Trump administration: if during the US-Iran conflict, intervention in derivatives markets is used to lower oil prices, it could trigger an “epic disaster.”

CME Group: Government Intervention Will Destroy Market Confidence

“The market doesn’t like government intervention in pricing,” said CME CEO Terry Duffy at a conference in Florida this week. He clearly stated that if the US government intervenes in the futures market to curb rising oil prices, it could cause an “epic disaster,” because investors might lose confidence in the market’s ability to set prices for key commodities.

Before Duffy made these remarks, media reports indicated that the US Treasury Department was considering measures, including market intervention, to lower oil prices. On Wednesday (the 11th), the Trump administration announced the release of strategic petroleum reserves as the latest attempt to curb oil price increases.

John McKenzie, CEO of TMX Group, also expressed similar views. He said, “I generally believe that government intervention in markets often leads to unexpected consequences. You try to solve one problem, but create another. The market will adjust on its own.”

An anonymous exchange CEO warned that if the US Treasury Department intervenes rashly, it could worsen the situation, as continued energy price increases would pose significant risks of losses for the government itself.

Oil Market Volatility Sparks “Behind-the-Scenes” Speculation

Recent sharp fluctuations in the crude oil market have traders on edge. On Monday (the 9th), Brent crude oil prices surged to nearly $120 per barrel, then plummeted sharply, quickly falling below $100. This rollercoaster movement has sparked speculation about “behind-the-scenes” players.

A report cited Tim Skirrow, head of derivatives at consultancy Energy Aspects, who said his clients have been asking, “Who is that big seller?” He added, “Market speculation suggests it might be the US Treasury,” noting that the government has previously intervened in other markets, such as currency markets.

Although consulting firm Rapidan Energy Group considers such actions “unprecedented,” its analysts wrote in a report that, given the current panic, the possibility of the US Treasury selling near-month oil futures cannot be completely ruled out.

The US Treasury Department has refused to comment. However, a person familiar with Treasury Secretary Janet Yellen’s thinking denied any market intervention. The US Department of Energy also stated that it is not involved in trading oil derivatives.