Meanwhile, $7 billion in market bets demonstrates how some people are benefitting from the war: File Image/Pixabay

The volatility of oil trading on Thursday matched that of hostilities between the U.S. and Iran, with the former stating it was still abiding by a ceasefire, and the latter launching botched attacks on U.S. military vessels in the Persian Gulf – and Brent as a result paring an early slide before finishing  the session at $100.06 per barrel.

West Texas Intermediate settled down 0.2 percent at $94.81 per barrel.

Meanwhile, an Iranian foreign ministry spokesperson told media that Iran was evaluating a proposal from Washington for a resolution of the war between the two countries: reportedly, a one-page, 14-point memorandum of understanding to not only end the war but also establish a framework for more detailed nuclear talks.

Allan Small, senior investment adviser at iA Private Wealth, said, “Sometimes markets drop just based on profit-taking…when we heard yesterday, for example, that this deal [or] treaty, whatever you want to call it, was on the table, markets reacted very positively, so now it’s like, OK, it’s not confirmed yet.

“It’s the old saying ‘buy the rumour, sell the news’ … probably buyers were buying in based on what they were or are anticipating, and today they’re selling a little bit.”

According to traders, market experts and Reuters analysis of exchange data, one thing about oil trading of late seems assured: some people have turned a handsome profit on oil since the U.S./Iran war began.

Reuters on Thursday reported “A series of well-timed market bets on falling oil prices totalling as much as $7 billion during March and April spread across multiple exchanges and types of fuel and derivatives just before major Iranian policy announcements by U.S. president Donald Trump,” exceeding previously reported bets amounting to $2.6 billion - which prompted Washington to warn staff against using non-public information for financial benefit.

Reuters could not establish who placed the bets and where from, but they included short positions for derivatives including ICE, CME crude, diesel and gasoline futures.

In other oil news on Thursday, the U.S. treasury department sanctioned Iraq’s deputy oil minister and several Iran-aligned militia leaders for allegedly facilitating the diversion of Iraqi crude to benefit Iran and affiliated militias.

This comes on the heels of Iraqi officials earlier this year stating that tankers stopped in the Persian Gulf were carrying forged Iraqi paperwork – an accusation Tehran denied.