We show that the one loop amplitudes of open and closed string theory in a constant background two-form tensor field are characterized by an effective string tension larger than the fundamental string tension, and by the appearance of antisymmetric and symmetric noncommutativity parameters. We derive the form of the phase functions normalizing planar and nonplanar tachyon scattering amplitudes in this background, verifying the decoupling of the closed string sector in the regime of infinite

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... ntum transfer. We show that the functional dependence of the phase functions on the antisymmetric star product of external momenta permits interpretation as a finite wavefunction renormalization of vertex operators in the open string sector. Using world-sheet duality we clarify the regimes of finite and zero momentum transfer between boundaries, demonstrating the existence of poles in the nonplanar amplitude when the momentum transfer equals the mass of an on-shell closed string state. Neither noncommutativity parameter has any impact on the renormalizability of open and closed string theory in the Wilsonian sense. We comment on the relationship to noncommutative scalar field theory and the UV-IR correspondence.