U.S. Energy Secretary Chris Wright triggered extreme volatility in crude oil prices on Tuesday. The deleted social media post incorrectly claimed the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz.
West Texas Intermediate (WTI) crude futures plunged nearly 19% as the news suggested easing geopolitical tensions. This volatility wiped an estimated $84 million from a major oil-linked ETF. The financial loss occurred in just ten minutes of trading.
The White House and Department of Energy retracted the claim after a staffer miscaptioned a video. Oil prices recovered most losses once the post was removed within minutes. Secretary Wright apologized for the incident and committed to personally reviewing all future communications.