Middle East conflict drives surge in oil trading activity on IG platform 

Rising geopolitical tensions and shifting market sentiment have triggered a sharp increase in trading activity among IG clients over the past week – particularly in commodities and volatility-linked assets.

Key week-on-week highlights from IG platform data:

• Crude oil
  • Number of trades in oil futures up 472% week-on-week
  • Total amount traded up 815%
  • Oil options trades up 100%, with traded volume up 71%
• Volatility
  • VIX trades up 10%, with volume up 74%
• Energy sentiment
  • Number of traders going long on natural gas down 35%
  • Crude oil positioning more balanced, with only a 7% positive sentiment swing (this is the increase in trades going long vs the week before)
• FX
  • GBP/USD saw a 21% negative sentiment swing as traders fret about a dollar resurgence on safe-haven flows and fears that sterling’s rally has gone too far
• Equities
  • FTSE 100 saw a 23% positive sentiment swing, boosted by news of the index’s return to all-time highs while still remaining cheaper in valuation terms than US markets

Chris Beauchamp, Chief Market Analyst at IG, said:
“The surge in oil trading reflects more than just short-term headlines – it’s a sign that markets are repositioning around a more volatile geopolitical environment. What’s interesting is the breadth of the response: we’re seeing heightened activity not only in oil futures, but also in options and the VIX, suggesting traders are bracing for wider market turbulence.

“At the same time, the market remains undecided on whether oil will rally further. Recent increases in production, notably from OPEC+ and US shale, are helping to cap prices, which is reflected in the relatively balanced sentiment we see among traders. This kind of cross-asset movement is typical when uncertainty bursts on to the scene, and it’s a reminder of how quickly sentiment can shift when macro risks return to the fore.”

About this data
This trend data is based on the trading activity of all UK-based IG clients and is updated daily.