NEW YORK / RankWire.AI / – On July 29, Brent crude surged past $90 a barrel amid heightened concerns over tighter supplies and renewed Middle East tensions. Brent closed at $90.74, marking a $6.65, or 7.9%, increase during trading. Meanwhile, West Texas Intermediate rose by $5.20, or 6.6%, finishing at $84.46. These gains represented the most significant daily advances for both benchmarks in several weeks. Oil prices also extended their July rally, which saw both contracts increase by more than 20%.
Tensions near key production and shipping hubs intensified market pressure. The U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq following drone attacks on Saudi oil facilities. Iran reported attacks on ships near the Strait of Hormuz as well as U.S. military bases in Jordan. During the same period, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey confirmed damage to a U.S.-owned floating storage tanker at the Egyptian location.
The ongoing conflict disrupted traffic along critical routes used by global energy suppliers. Commercial shipping activity remained restricted in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant share of Persian Gulf oil exports, was affected. The Bab el-Mandeb Strait links Red Sea shipping lanes with Asian and European markets. These route delays impacted cargo schedules and increased pressure on available supplies. Traders closely monitored damages near energy facilities and transportation infrastructure.
U.S. Crude Inventories Experience Sharp Decline
The rise in crude prices on July 29 was reinforced by domestic inventory data. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial oil stocks. Inventories fell to 404.5 million barrels, the 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, coinciding with assessments of transport disruptions, military strikes, and damage near regional energy sites.
However, on August 3, oil prices declined sharply after the United States halted another planned strike against Iran. President Donald Trump also announced efforts towards an agreement on Iran’s nuclear program and the Strait of Hormuz. Brent dropped 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. Within three trading sessions, this decline erased most of the July 29 gain.
OPEC+ Approves Additional Oil Output for September as Prices Decline
OPEC+ authorized another increase in oil production for September amid falling prices. The group agreed to raise its output target by roughly 188,000 barrels per day. This decision marked the reversal of 1.65 million barrels per day of voluntary cuts made earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman all supported the move. Members also committed to monthly reviews of market conditions and compliance with production targets. Their next assessment is scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel in June, which was $22 below May’s average and $32 below the April 2026 peak. The July energy outlook predicted an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by falling U.S. inventories, constrained shipping routes, and ongoing conflicts near key energy infrastructure.