NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel as oil markets responded to tightening supply conditions and escalating Middle East tensions. The contract closed at $90.74, marking an increase of $6.65, or 7.9%, during trading. West Texas Intermediate also rose, gaining $5.20, or 6.6%, to settle at $84.46. These gains represented the most substantial daily increases for both benchmarks in several weeks. Oil prices extended a rally from July that boosted both contracts by over 20%.
The market experienced added pressure from military activity near vital production and shipping hubs. U.S. and Saudi forces conducted strikes against Iran-backed groups in Iraq following drone assaults targeting Saudi oil facilities. Iran reported attacks on vessels near the Strait of Hormuz and on U.S. military 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 site.
These conflicts disrupted traffic along key routes used by global energy exporters. Limited commercial shipping persisted in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant portion of Persian Gulf oil exports, and the Bab el-Mandeb Strait, linking Red Sea shipping lanes with markets in Asia and Europe, saw delays affecting cargo schedules and increasing pressure on available supplies. Traders monitored damages near energy facilities and transportation infrastructure closely.
U.S. crude inventories decline significantly
The rise in crude prices on July 29 was supported by domestic inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks. This lowered inventories to 404.5 million barrels, the lowest since 2018, excluding crude stored in the Strategic Petroleum Reserve. The report confirmed a substantial weekly drop in U.S. supplies, coinciding with market concerns over transport disruptions, military actions, and damage near key energy sites in the region.
On August 3, however, oil prices fell sharply after the United States halted another planned strike against Iran. President Donald Trump announced efforts toward a deal on Iran’s nuclear program and the Strait of Hormuz. Brent dropped $4.49, or 5.1%, to $83.44 in early trading. West Texas Intermediate declined $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within three trading sessions.
OPEC+ approves additional output increase for September
In response to sliding prices, OPEC+ approved an increase in oil production for September, raising its target by approximately 188,000 barrels per day. This move marked the reversal of 1.65 million barrels per day of voluntary cuts introduced earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman are among the members participating in the agreement. They stated that they would 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 crude averaged $85 a barrel during June, which was $22 below May’s average and $32 below the peak in April 2026. The July energy outlook projected the average Brent price for 2026 at $82 per barrel. The move above $90 on July 29 was driven by declining U.S. inventories, shipping route constraints, and ongoing conflicts near critical energy infrastructure.