NEW YORK / RankWire.AI / – On July 29, Brent crude prices surged past the $90 mark, driven by fears of tighter supplies and renewed conflict in the Middle East. The benchmark settled at $90.74, reflecting a gain of $6.65, or 7.9%, during the trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, closing at $84.46. These increases marked the most substantial daily gains for both benchmarks in several weeks. Oil prices also continued their July rally, boosting both contracts by over 20%.
Heightened military activity near crucial production and shipping hubs added further pressure on the market. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran reported attacks on ships near the Strait of Hormuz and on U.S. 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.
The conflict disrupted crucial shipping routes used by global energy suppliers. Commercial vessels faced restrictions in parts of the Gulf and the Red Sea. The Strait of Hormuz accounts for a significant portion of oil exports from Persian Gulf nations. The Bab el-Mandeb Strait connects Red Sea shipping lanes with markets in Asia and Europe. Delays along these routes affected cargo schedules and heightened demand on existing supplies. Traders also monitored damage at energy facilities and transportation infrastructure.
U.S. Crude Inventories Decline Significantly
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 since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a notable weekly reduction in U.S. supplies, amid ongoing assessments of transportation disruptions, military actions, and damage near regional energy infrastructure.
On August 3, oil prices sharply declined after the United States halted plans for another attack against Iran. President Donald Trump also announced negotiations aimed at an agreement on Iran’s nuclear program and the Strait of Hormuz. Brent dropped by $4.49, or 5.1%, to $83.44 during early trading. West Texas Intermediate fell $4.90, or 5.8%, to $79.77. This decline erased most of the July 29 gains within just three trading sessions.
OPEC+ Approves Additional Output for September
In response to falling prices, OPEC+ sanctioned an increase in production for September, raising its target by approximately 188,000 barrels per day. This move completed the reversal of 1.65 million barrels per day in voluntary cuts implemented during 2023. Countries including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman joined the agreement. They also committed to ongoing monthly reviews of market conditions and compliance levels, with their next assessment scheduled for September 6.
Despite the August price pullback, Brent and WTI prices remained above their average levels in June. Brent’s average price in June was $85 a barrel, which is $22 below May’s figure and $32 below the April 2026 peak. The July energy outlook projected an average Brent price of $82 a barrel for 2026. The move beyond $90 on July 29 reflected factors such as lower U.S. inventories, constrained shipping routes, and ongoing conflicts near vital energy infrastructure.