U.S. natural gas futures advanced on Tuesday, recouping losses from the prior session as crude oil prices moved higher amid escalating Middle East tensions. The September contract on the New York Mercantile Exchange rose 8.6 cents, or 3.2%, to settle at $2.78 per million British thermal units.
The gain followed a sharp decline on Monday, when prices fell to their lowest level since August 7, reflecting a pullback from recent highs. Record production levels and expectations of softer demand in the coming weeks also capped the advance.
Brent crude oil futures climbed above $91 per barrel, driven by concerns over potential supply disruptions tied to the Iran conflict. Iran’s top negotiator, Mohammad Baqer Qalibaf, signaled a more assertive stance, while the U.S. rejected extending a ceasefire agreement, increasing the risk of prolonged regional instability. The Strait of Hormuz is expected to remain closed until Washington meets terms of a June interim accord with Tehran.
Analysts noted that while the rise in natural gas prices aligns with the upward move in oil, the market remains under pressure from elevated production and seasonal demand expectations.
