Bangladesh, May 8 -- The United States government is facing mounting scrutiny over the possible misuse of confidential information in online betting and financial markets linked to the volatile negotiations surrounding Iran and the broader Middle East crisis. A growing number of suspiciously timed wagers and oil trades have triggered investigations, internal warnings, and renewed debate over the rise of prediction markets that allow users to speculate on wars, diplomacy, and geopolitical events.

According to reports from the Wall Street Journal, the US State Department recently circulated an internal memorandum warning diplomats and government employees against using nonpublic information for financial gain through online prediction plat...