NEW YORK / RankWire.AI / – On July 29, Brent crude prices surpassed the $90 mark per barrel as the oil market responded to tightening supplies and ongoing Middle East tensions. The contract settled at $90.74, reflecting a $6.65 increase, or 7.9%, during the trading session. Meanwhile, West Texas Intermediate climbed by $5.20, or 6.6%, closing at $84.46. These gains marked the most significant daily increases for both benchmarks in several weeks. Oil prices also extended a July rally that saw both contracts rise more than 20%.
Escalating military activity near major oil production and shipping hubs further pressured the market. 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 vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During the same period, explosions impacted a natural gas loading site in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
These conflicts disrupted navigation along critical routes used by global energy suppliers. Limited commercial shipping was observed in 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 connects Red Sea shipping lanes with markets in Asia and Europe. Such delays impacted cargo schedules and heightened pressure on available oil supplies. Traders also monitored damage assessments near energy infrastructure and transportation facilities.
U.S. crude inventories experience sharp decline
The U.S. Energy Information Administration’s data bolstered the July 29 increase in crude prices. It reported a decrease of 7.2 million barrels in commercial oil stocks, bringing 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 drop in available U.S. supplies, coinciding with ongoing market concerns over transportation disruptions, military strikes, and damage at regional energy sites.
Following this, oil prices declined sharply on August 3 after the U.S. halted another planned strike against Iran. President Donald Trump announced efforts toward an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent crude dropped $4.49, or 5.1%, to $83.44 during early trading. West Texas Intermediate fell by $4.90, or 5.8%, ending at $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ approves additional production for September
OPEC+ sanctioned an increase in oil output for September as prices dipped. The alliance agreed to raise its target by approximately 188,000 barrels per day, completing the reversal of 1.65 million barrels per day in voluntary cuts introduced earlier in 2023. Member countries including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the decision. They committed to ongoing monthly reviews of market conditions and adherence to production levels, with the next assessment scheduled for September 6.
Despite the August decline, Brent and WTI prices stayed above their average levels in June. In June, Brent crude averaged $85 a barrel, which is $22 below May and $32 below the peak in April 2026. The July energy outlook projected an average Brent price of $82 for 2026. The move past $90 on July 29 was driven by declining U.S. inventories, ongoing shipping restrictions, and active conflict near key oil and gas infrastructure.