Iran war prompts Intercontinental Exchange to raise oil futures margins
Since the war broke out in Iran this year, the cost to trade oil futures has shot up.
Intercontinental Exchange (ICE), the exchange, more than doubled the cash needed for Brent crude trades and more than four times it for diesel, now more than $11,000 and $21,000 per contract.
This all happened because oil shipments through a key route, the Strait of Hormuz, dropped sharply, making markets extra jumpy.
Investors back away from oil futures
Oil prices briefly soared to nearly $120 a barrel, but have calmed down after a ceasefire.
With higher trading costs and unpredictable signals from leaders like President Trump, several investors are backing off from oil futures right now.
CME Group Inc. hasn't said if it will raise its own requirements yet, but trading activity could pull back further and margins may rise again if the conflict continues.