NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel as oil markets responded to tightening supplies and escalating Middle East tensions. The contract closed at $90.74, a $6.65 increase, or 7.9%, for the session. Meanwhile, West Texas Intermediate rose by $5.20, or 6.6%, ending at $84.46. These were the most substantial daily gains for both benchmarks in several weeks. Oil prices also extended a July rally that boosted both contracts by over 20%.
Heightened military activity near key production and shipping hubs added upward pressure on prices. U.S. and Saudi forces targeted Iran-backed factions in Iraq following drone assaults on Saudi oil facilities. Iran reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. During the same timeframe, explosions struck a natural gas loading site in Egypt. Maritime security firm Ambrey confirmed damage to a U.S.-owned floating storage tanker at the Egyptian site.
These conflicts disrupted major transit routes used by global energy suppliers. Shipping activity was limited in parts of the Gulf and the Red Sea. The Strait of Hormuz, which facilitates a significant portion of Persian Gulf oil exports, and the Bab el-Mandeb Strait connecting Red Sea lanes to Asian and European markets, saw delays that affected cargo schedules and heightened supply concerns. Traders monitored damage assessments at energy facilities and transportation infrastructure.
U.S. Crude Inventories Decline Significantly
The rise in crude prices on July 29 was supported by U.S. inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial crude stockpiles. Inventories fell to 404.5 million barrels—the lowest since 2018—excluding oil stored in the Strategic Petroleum Reserve. This weekly decline underscored tightening supplies amid ongoing transport disruptions, military actions, and damage to regional energy infrastructure.
On August 3, oil prices dropped sharply after the U.S. halted a planned strike against Iran. President Donald Trump also announced efforts to reach an agreement on Iran’s nuclear program and the Strait of Hormuz. Brent declined by $4.49, or 5.1%, to $83.44 in early trading, while West Texas Intermediate fell by $4.90, or 5.8%, to $79.77. This decline erased most of the July 29 gains within three trading days.
OPEC+ Approves Additional Output Increase for September
In response to falling prices, OPEC+ approved a further increase in production for September, raising the target by approximately 188,000 barrels per day. This move reversed 1.65 million barrels per day of voluntary cuts implemented earlier in 2023. Participants such as Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to continue monthly reviews of market conditions and compliance levels, with their next meeting scheduled for September 6.
Despite the recent pullback in prices, Brent and WTI remained above their average levels for June. Brent’s average price was $85 a barrel in June, which is $22 below the May average and $32 below the April 2026 peak. The July energy outlook forecasted an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and ongoing conflicts near vital energy infrastructure.