NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel amid market reactions to tightening supplies and renewed Middle East tensions. The benchmark closed at $90.74, marking a $6.65, or 7.9%, increase during the session. West Texas Intermediate also gained $5.20, or 6.6%, closing at $84.46. These increases represented the most significant daily gains for both benchmarks in several weeks. Oil prices extended their July rally, boosting both contracts by over 20%.
Heightened military activity near key production and shipping hubs contributed to the market’s volatility. The U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone attacks on Saudi oil facilities. Iran also reported assaults on ships near the Strait of Hormuz and on U.S. installations in Jordan. During the same period, explosions impacted a natural gas loading site in Egypt, with maritime security firm Ambrey reporting damage to a U.S.-owned floating storage tanker at the Egyptian facility.
The conflicts disrupted vital transit routes used by global energy suppliers. Commercial shipping faced restrictions along parts of the Gulf and the Red Sea. The Strait of Hormuz accounts for a significant portion of oil exports from Persian Gulf producers, while the Bab el-Mandeb Strait links Red Sea shipping lanes with Asian and European markets. These route delays affected cargo schedules and heightened pressures on available supplies. Traders also monitored damage at energy facilities and transport infrastructure.
U.S. crude inventories see sharp decline
The latest U.S. inventory data reinforced the July 29 surge in crude prices. The Energy Information Administration announced a 7.2 million-barrel decrease in commercial oil stocks, bringing inventories down to 404.5 million barrels—its lowest level since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly drop in U.S. supplies amid ongoing transport disruptions, military actions, and damage to regional energy infrastructure.
On August 3, however, oil prices plummeted after the U.S. halted another planned strike against Iran. President Donald Trump also announced negotiations aimed at an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent declined $4.49, or 5.1%, to $83.44, while West Texas Intermediate fell $4.90, or 5.8%, to $79.77. This downward movement erased much of the July 29 gains within just three trading sessions.
OPEC+ Approves Additional Oil Output for September
In response to falling prices, OPEC+ sanctioned an increase in production for September, raising its target by approximately 188,000 barrels per day. This move reversed 1.65 million barrels per day of voluntary cuts that had been implemented during 2023. Member countries including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to continue monthly reviews of market developments and compliance levels, with their next meeting scheduled for September 6.
Despite the pullback in early August, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel in June, which is $22 below May’s figure and $32 below the April 2026 peak. The July energy outlook projected the average Brent price for 2026 at $82 a barrel. The surge past $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and active conflicts near major oil and gas infrastructure.