US natural gas futures fell more than 3% to $2.77 per MMBtu on Wednesday, erasing the previous session’s gains to hover at its lowest level since August 2025. The gas market tracked broader weakness across global energy markets after the US and Iran agreed to a two-week ceasefire, an arrangement expected to pause the American-Israeli military campaign in exchange for Tehran reopening the Strait of Hormuz.
Iran said safe passage through the strait was “possible” for two weeks. Additional pressure came from forecasts pointing for milder weather and weaker demand over the next two weeks, with temperatures projected to stay mostly warmer than normal through April 22. Tuesday’s brief rebound, when gas prices rose 2.1%, was supported by a drop in daily output. US production has fallen by 3 bcfd over the past two days to a two-week low of 108.9 bcfd, driven largely by declines in Louisiana and Arkansas.
