About 400 million barrels’ worth of $1-wide put spreads have traded since mid-last week as oil traders hedge abrupt reversals in Donald Trump’s Iran policy.
Thursday alone saw roughly 70 million barrels of September $75/$74 put spreads trade on ICE Futures Europe, underscoring how quickly demand for downside protection has built.
The hedge targets swings triggered by Trump’s shifting signals on expanded military action in Iran and possible tolls on shipping through the Strait of Hormuz.
The burst of options activity shows traders increasingly pricing policy U-turn risk—not just supply disruption—as a key driver of crude-market volatility.