Traders Pile Into Record Oil Bets Targeting $70

On Tuesday, traders placed an unprecedented number of bets against oil. According to preliminary ICE Futures Europe data cited by Bloomberg, Brent put option volume hit 764,000 contracts.

A put option becomes profitable when prices fall below a certain level. Some of the largest trades from Tuesday only pay out if oil drops to roughly $70 by December, compared with the current price of about $96.

Record Bets Against Oil Target $70 by December

December $70/$69 put spreads alone exceeded 110,000 contracts. A spread combines two options a dollar apart, limiting both the cost and the payout. These positions only yield gains if Brent, the global oil benchmark, falls beneath $70.

🚨 BEARISH BETS AGAINST OIL JUST HIT A RECORD HIGH.

Brent crude put options just hit a record 764,000 contracts.

Oil has already crashed more than 10% in just 8 days. And traders are betting the sell off isn't over.

U.S.-Iran settlement talks and the reopening of a major… pic.twitter.com/TvYBMYiJ0e

— Bull Theory (@BullTheoryio) September 23, 2026

Yet the record may exaggerate outright bearish sentiment. Narrow spreads accounted for more than half of Tuesday's volume, according to the same ICE data. These instruments are often used to hedge existing positions rather than to place a direct bet.

Why Oil Fell More Than 10% in Eight Days

Brent was trading near $106 on September 14. By Tuesday, it had briefly slipped below $98, marking its sixth straight daily decline and the longest losing streak since August 2025. The downturn reversed a rally driven by war concerns as the Strait of Hormuz remained largely closed.

Two key factors fueled the sell-off. First, U.S. envoys Steve Witkoff and Jared Kushner met with Iranian Foreign Minister Abbas Araghchi at the UN General Assembly. President Donald Trump praised the three-hour discussion.

“They had a very good meeting, a very productive meeting,” Al Jazeera reported, citing Trump.

Iran indicated it could reopen Hormuz within seven days if Washington reduced military pressure. Its conditions also include lifting the U.S. naval blockade on Iranian ports and releasing frozen assets.

Second, Saudi Aramco restarted its East-West pipeline on Tuesday, as Hydrocarbon Processing reported. The pipeline moves crude to the Red Sea port of Yanbu, bypassing Hormuz. Drones had knocked it offline on September 13.

What Stands Between Oil and $70

Oil stabilized on Wednesday. Brent spot traded near $96.64, while U.S. crude rose 1.1% to about $94.63, according to TradingView data. To reach $70, prices would need to fall another roughly 28%.

No U.S.-Iran agreement has been announced. Additionally, the Saudi pipeline restarted at a low capacity, and a security source said it could take weeks to restore about 4 million barrels a day.

Earlier this month, JPMorgan dropped its forecast baseline, saying it could no longer model the war's endgame.