NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel as markets responded to tighter supply conditions and renewed conflict in the Middle East. The benchmark closed at $90.74, reflecting a gain of $6.65, or 7.9%, during that trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, settling at $84.46. These gains marked the most substantial daily rise for both benchmarks in several weeks. Oil prices also extended a rally from July that pushed both contracts up by over 20%.
Heightened military activity near key production and shipping hubs added further pressure to the oil markets. U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. During the same period, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian facility.
Disruptions caused by these conflicts hindered traffic along critical routes used by global energy suppliers. Commercial shipping remained constrained in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant portion of oil exports from Persian Gulf producers, experienced delays. The Bab el-Mandeb Strait, connecting Red Sea shipping lanes with Asian and European markets, also faced disruptions. These delays affected cargo schedules and heightened pressure on supplies. Traders closely monitored damage assessments near energy facilities and transportation infrastructure.
U.S. crude stockpiles decline significantly
The rise in crude prices on July 29 was reinforced by domestic inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks. Inventories dropped to 404.5 million barrels, their lowest level since 2018, excluding crude stored in the Strategic Petroleum Reserve. This report confirmed a substantial weekly decline in U.S. supplies, arriving amidst ongoing assessments of transportation disruptions, military strikes, and damage near regional energy sites.
On August 3, however, oil prices fell sharply after the United States halted another planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent crude declined by $4.49, or 5.1%, to $83.44 in early trading, while West Texas Intermediate dropped by $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ moves to increase September output
Amid the declining prices, OPEC+ approved a further increase in production for September, raising their target by approximately 188,000 barrels per day. This move completed the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, who indicated plans to continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their average levels in June. Brent’s spot crude averaged $85 a barrel in June, which is $22 below the May average and $32 below the April 2026 peak. The July energy outlook projects an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by lower U.S. inventories, restricted shipping routes, and active conflicts near major oil and gas infrastructure.