US natural gas futures fell more than 3% to $2.77 per MMBtu on Wednesday, wiping out the prior session’s gains and bringing prices to their lowest level since August 2025. The decline reflected broader weakness across global energy markets following news that the US and Iran had agreed to a two-week ceasefire—an arrangement expected to temporarily halt the American-Israeli military campaign in exchange for Tehran reopening the Strait of Hormuz. Iran said safe passage through the strait would be “possible” for two weeks.
Additional downward pressure came from forecasts for milder weather and softer demand over the next two weeks, with temperatures expected to remain mostly above seasonal norms through April 22. Tuesday’s brief rebound, when gas prices climbed 2.1%, had been supported by a decline in daily output. US production has fallen by 3 bcfd over the past two days to a two-week low of 108.9 bcfd, led by sharp decreases in Louisiana and Arkansas.
