Last week, some asset managers and traders active in the energy sector watched two asset classes very carefully. WTI crude oil and natural gas were expected to make big moves early in the year and it appears that the latter is gearing up for a major setup.

Natural gas fell heavily in Thursday’s trading session as inventories were higher than expected. The drop in price came swiftly and natural gas dropped to $2.72, falling nearly 2%. Crude oil dropped below $100 a barrel for the first time this year, closing at $99.27 a barrel, down $1.60.

What had many traders extremely concerned was the outcome of Iran’s threat to close the Strait of Hormuz, a key shipping route for oil in the Middle Eastern region. After days of continued military exercises and threats from Iran, many countries came to the consensus that Iran would not make good on its threats. $150 a barrel oil was the talk among traders if Iran followed through.

Heating oil, while not as widely followed as the aforementioned commodities, has also taken a huge hit in the last few days and was essentially flat in trading resting at $3.05 a contract.