CME warns US intervention in oil futures would be 'biblical disaster' - FT

The CME Group, operator of the New York Mercantile Exchange where U.S. oil futures are traded, has cautioned against potential government intervention in energy markets, with CEO Terry Duffy describing such actions as risking a "biblical disaster" if implemented to stabilize oil prices during geopolitical tensions. Speaking at a conference in Boca Raton, Florida, Duffy emphasized that market confidence could erode if regulators manipulated futures pricing, which he argued would disrupt the fundamental role of derivatives markets in reflecting supply-and-demand dynamics for critical commodities like crude oil.

The warning follows reports that the U.S. Treasury Department was exploring measures to curb rising oil prices amid heightened tensions with Iran, including possible interventions in futures markets. Duffy's remarks underscore broader concerns about the unintended consequences of policy actions that distort market mechanisms, particularly in volatile environments. Futures markets serve as a barometer for global energy expectations, and external interference could exacerbate uncertainty, potentially triggering cascading effects across financial and physical commodity markets.

Regulators and market participants remain divided on the appropriate response to price shocks, balancing short-term economic stability against long-term market integrity. While governments often face pressure to mitigate energy costs during crises, Duffy's stance highlights the risks of undermining the autonomy of market-driven pricing systems.