Oil futures surged as automated trading systems increased long positions following former President Donald Trump’s comments on Iran’s nuclear program, triggering a spike in crude prices. The shift reflects growing market sensitivity to geopolitical rhetoric.
- Brent crude rose 4.2% to $89.60 per barrel
- WTI crude reached $85.30 per barrel
- Open long positions in WTI increased by 37% in 24 hours
- Net long exposure in March WTI contract jumped to 42,600 contracts
- ExxonMobil (XOM) gained 2.9%, Chevron (CVX) rose 2.6%
- S&P 500 declined 0.4% amid inflation concerns
A sharp rise in oil prices was observed on Tuesday, with Brent crude climbing 4.2% to $89.60 per barrel and U.S. West Texas Intermediate (WTI) hitting $85.30 amid heightened speculation. This move coincided with a notable increase in algorithm-driven bullish bets across major commodity platforms, particularly in the front-month futures contracts. The surge in activity was fueled by statements from former President Donald Trump during a public address in Florida, where he warned of potential military action against Iran if the country continues advancing its uranium enrichment activities. Market participants interpreted the remarks as a signal of escalating Middle East tensions, prompting rapid repositioning by high-frequency trading algorithms designed to react to sentiment shifts. Data from exchange filings showed a 37% increase in open long positions for WTI crude over the past 24 hours, with institutional hedge funds and proprietary trading desks contributing significantly to the build-up. The most active contract for March delivery saw net long exposure rise from 31,200 to 42,600 contracts, representing a $1.8 billion shift in directional positioning. Energy equities responded promptly, with ExxonMobil (XOM) gaining 2.9% and Chevron (CVX) rising 2.6%. Meanwhile, global equity indices experienced modest volatility, with the S&P 500 dropping 0.4% as investors weighed inflationary risks linked to higher energy costs. The move underscores how machine-driven strategies now play a dominant role in shaping short-term price dynamics in commodities markets.