US natural gas futures traded in a narrow band Thursday, swinging between modest gains and losses after an earlier rally was erased. The swing followed Iran’s foreign minister’s declaration that the Strait of Hormuz was “completely open,” a comment that sent crude oil prices tumbling. Traders cited the remark as easing fears of a maritime chokepoint, prompting a swift repricing across energy contracts. Mid‑day trading saw volumes rise modestly.

The oil plunge triggered immediate outflows from a basket of energy products that includes the US natural gas futures contract, dragging the futures lower despite unchanged domestic supply fundamentals. Near‑term US gas output and demand remain insulated from the geopolitical shift, meaning the price move reflects a broader risk‑off rhythm rather than a shift in gas fundamentals. Seasonal heating demand remains modest. The regional market remains well supplied.

Investors therefore watched the decoupling of gas from oil as a reminder that natural‑gas pricing can diverge when macro‑risk sentiment changes. Hedge funds that hold long gas positions may face short‑term volatility, while utilities with exposure to spot prices could see cost fluctuations. The episode underscores that geopolitical headlines can move oil sharply without immediately altering US gas market balance. Such moves often influence hedge fund positioning across commodities today.