NEW YORK / RankWire.AI / – On July 29, Brent crude prices surged past the $90 mark per barrel as oil markets responded to tighter supply conditions alongside renewed conflicts in the Middle East. The benchmark closed at $90.74, reflecting an increase of $6.65, or 7.9%, over the course of the trading session. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, to settle at $84.46. These gains represented the most significant daily advances for both benchmarks in several weeks. Oil prices also extended their July rally, with both contracts rising over 20% during the period.
The market was further influenced by military operations near critical production and shipping zones. U.S. and Saudi military forces targeted Iran-backed groups in Iraq after drone strikes hit Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. military installations in Jordan. During the same timeframe, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker located at the Egyptian site.
These conflicts disrupted navigation along key global energy routes. Shipping activity remained constrained in segments of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant portion of oil exports from Persian Gulf producers, was affected. Similarly, the Bab el-Mandeb Strait, linking Red Sea routes with Asian and European markets, experienced delays that impacted cargo schedules and heightened pressure on available supplies. Market participants closely monitored damage assessments at energy facilities and transport infrastructure.
U.S. crude stockpiles see a significant decline
U.S. domestic inventory data reinforced the upward trend in crude prices seen on July 29. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks. Total inventories dropped to 404.5 million barrels, marking the lowest level since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The report confirmed a substantial weekly decrease in U.S. supplies, coinciding with ongoing concerns about transportation disruptions, military actions, and damage to regional energy infrastructure.
On August 3, however, oil prices experienced a sharp decline after the United States halted a planned strike against Iran. President Donald Trump also announced efforts toward an agreement addressing Iran’s nuclear program and the Strait of Hormuz. Brent fell by $4.49, or 5.1%, to $83.44 in early trading, while West Texas Intermediate decreased by $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ approves additional production for September amid falling prices
In response to declining prices, OPEC+ sanctioned another increase in oil output for September, raising its target by approximately 188,000 barrels per day. The move marks the reversal of 1.65 million barrels per day in voluntary cuts introduced during 2023. Participating members such as Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to continue monthly reviews of market conditions and compliance with production levels. Their next evaluation 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 that month, which was $22 below May’s figures 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 active conflicts near major oil and gas infrastructure.
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