NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark amid concerns over tightening supplies and renewed conflict in the Middle East. The benchmark settled at $90.74, recording a rise of $6.65, or 7.9%, during trading hours. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, to close at $84.46. These movements represented the most significant daily gains for both benchmarks in several weeks. Oil prices also extended their July rally, lifting both contracts by over 20%.
Heightened military activity near critical production and shipping hubs intensified market pressure. In response to drone assaults on Saudi oil facilities, U.S. and Saudi forces targeted Iran-supported groups in Iraq. Iran, in turn, reported attacks on vessels near the Strait of Hormuz and on U.S. military installations in Jordan. During the same period, explosions struck a natural gas loading site in Egypt. Ambrey, a maritime security firm, reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
The ongoing conflicts disrupted transit routes essential for global energy movement. Commercial shipping faced restrictions in parts of the Gulf and the Red Sea. The Strait of Hormuz, a key route for Persian Gulf oil exports, saw reduced traffic, as did the Bab el-Mandeb Strait, which connects Red Sea shipping lanes to Asian and European markets. Delays along these pathways caused cargo delays and heightened concerns over supply availability. Traders also monitored damage reports near energy production and transportation facilities.
U.S. Crude Inventories Diminish Significantly
The increase in crude prices on July 29 was supported by U.S. inventory data. The Energy Information Administration revealed a reduction of 7.2 million barrels in commercial oil stocks. Stockpiles decreased 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 decline in U.S. supplies, amid ongoing concerns about transportation disruptions, military strikes, and damage near key regional energy sites.
However, on August 3, oil prices fell sharply after the United States halted another planned strike against Iran. President Donald Trump also announced efforts aimed at an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent dropped by $4.49, or 5.1%, to reach $83.44 during early trading. West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. Within three trading sessions, much of the July 29 increase was wiped out.
OPEC+ Approves Additional Output for September
In response to declining prices, OPEC+ agreed to boost oil production in September. The group increased its output target by approximately 188,000 barrels per day, completing the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman joined this decision. They also committed to ongoing monthly reviews of market conditions and adherence to production quotas. The next assessment is scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their June averages. Brent crude averaged $85 a barrel in June, which was $22 below May’s figures and $32 below the April 2026 peak. The July energy outlook projected an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by lower U.S. inventories, constrained shipping routes, and ongoing conflicts near major energy infrastructure.