US Oil Price Surge Drives Up Natural Gas Futures Amid Iran Tensions

US natural gas futures rebounded on Tuesday as crude oil prices rose. The increase in oil prices was largely due to concerns about energy supply disruptions following Iran's announcement that it would take a more offensive approach, and the US rejection of an extended ceasefire agreement.

The likelihood of an agreement to end the Iran war decreased, leading to higher oil prices. As a result, natural gas futures on the New York Mercantile Exchange (Nymex) also increased. September delivery natural gas futures rose 8.6 cents, or 3.2%, to close at $2.78 per million British thermal units.

The Strait of Hormuz will remain closed until the US fulfills the terms of an interim agreement signed with Iran in June, according to top Iranian negotiator Mohammad Baqer Qalibaf.