NEW YORK / RankWire.AI / – On July 29, Brent crude surged past $90 a barrel amid concerns over tightening supplies and escalating Middle East tensions. The benchmark closed at $90.74, an increase of $6.65, or 7.9%, during the trading session. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, to settle at $84.46. These gains represented the most substantial daily increases for both benchmarks in several weeks. Oil prices also extended their July rally, elevating both contracts by more than 20%.
Market pressures intensified as military activity near major oil production and shipping hubs increased. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. Additionally, explosions impacted a natural gas loading site in Egypt during the same period. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian facility.
Disruptions to key maritime routes used by global energy suppliers caused further market instability. Limited commercial shipping activity persisted in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant share of oil exports from Persian Gulf producers, was affected, as well as the Bab el-Mandeb Strait that connects Red Sea shipping lanes with markets in Asia and Europe. These delays disrupted cargo schedules and heightened the strain on existing supplies. Traders also monitored reports of damage near energy infrastructure and transportation facilities.
U.S. crude inventories experience sharp decline
U.S. domestic inventory figures reinforced the July 29 increase in crude prices. The Energy Information Administration announced a 7.2 million-barrel reduction in commercial oil stocks, bringing total inventories down to 404.5 million barrels—the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly decrease in U.S. supplies, arriving amid ongoing assessments of transport disruptions, military strikes, and damage to regional energy sites.
Following this, oil prices experienced a sharp decline on August 3 after the United States halted another planned strike against Iran. President Donald Trump also announced initiatives aimed at reaching an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent dropped by $4.49, or 5.1%, to $83.44 during early trading, while West Texas Intermediate decreased by $4.90, or 5.8%, to $79.77. The downward move erased much of the July 29 rally within just three trading days.
OPEC+ proceeds with additional barrels for September
As prices declined, OPEC+ approved a further increase in production for September. The group agreed to raise its output target by approximately 188,000 barrels per day, completing the reversal of the 1.65 million barrels per day of voluntary cuts introduced earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in this decision. The members committed to ongoing monthly reviews of market conditions and compliance levels, with the next assessment scheduled for September 6.
Despite the August pullback, Brent and WTI prices remained above their June averages. Brent crude averaged $85 a barrel in June, which is $22 below the May figure and $32 below the peak of April 2026. The energy outlook for July projected an average Brent price of $82 a barrel for 2026. The move above $90 on July 29 was driven by lower U.S. inventories, constrained shipping routes, and active conflicts near major oil and gas infrastructure.