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US Natural Gas Update: Futures Open Lower as Market Awaits Iranian Response to US Memo Outlining Path to Peace

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-- US natural gas futures opened lower on Thursday, following other energy futures contracts, as traders brace for signals in the coming hours on the direction the US-Iran war is likely to take next.

Henry Hub futures slipped 1.6% to $2.69 while the continuous contract also eased to the same price level.

Markets have been turbulent since the publication of an Axios article on Wednesday, which, citing two US officials and two other sources familiar with developments, said there was some optimism on the US side that Iran could agree to a one-page, 14-point memo providing a framework for halting the conflict.

The market reacted strongly to the news with both oil and gas retreating sharply, but some of those losses were later undone, possibly as traders questioned the story's reference to optimism when US President Donald Trump later repeated a threat of force if Iran did not come to an agreement with the US.

Media reports have since cited sources in Iran confirming that they are studying the proposal and another report on Thursday indicated that Iran's response to it was likely to come later in the day.

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