NEW YORK / RankWire.AI / – On July 29, Brent crude prices exceeded $90 a barrel as markets responded to tightening supply conditions and ongoing Middle East tensions. The contract closed at $90.74, marking a $6.65, or 7.9%, increase during trading. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, to settle at $84.46. These gains represented the most significant daily rises for both benchmarks in several weeks. Oil prices continued their July rally, boosting both contracts by over 20%.
Tensions near key production and shipping hubs intensified market pressure. U.S. and Saudi military forces targeted Iran-backed groups in Iraq following drone strikes against Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. 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 transportation along crucial routes relied upon by global energy exporters. Shipping activity in sections of the Gulf and the Red Sea remained restricted. The Strait of Hormuz, a vital conduit for a large portion of Persian Gulf oil exports, and the Bab el-Mandeb Strait, which connects Red Sea shipping lanes with Asian and European markets, experienced delays. Such disruptions impacted cargo schedules and heightened pressure on available supplies. Traders also monitored damages near energy infrastructure and transportation facilities.
U.S. crude inventories experience significant decline
The increase in crude prices on July 29 was supported by data showing a sharp drop in U.S. commercial oil stocks. The Energy Information Administration reported a decrease of 7.2 million barrels, 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 substantial weekly reduction in U.S. oil supplies amid ongoing concerns over transport disruptions, military strikes, and damage at regional energy sites.
On August 3, oil prices plummeted sharply after the United States suspended an additional planned strike against Iran. President Donald Trump also announced efforts to negotiate agreements related to Iran’s nuclear program and the Strait of Hormuz. Brent fell by $4.49, or 5.1%, to $83.44 during early trading. WTI declined by $4.90, or 5.8%, to settle at $79.77. This drop erased much of the July 29 gains within three trading sessions.
OPEC+ proceeds with additional September output increase
As prices declined in August, OPEC+ approved a further boost in oil production for September, raising its target by approximately 188,000 barrels per day. This decision completed the reversal of 1.65 million barrels per day of voluntary cuts introduced throughout 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman are part of the agreement. Representatives stated that they will maintain monthly reviews of market dynamics and compliance levels, with the next assessment scheduled for September 6.
Despite the August decline, Brent and WTI prices remained above their typical June averages. Brent crude averaged $85 a barrel in June, which is $22 below the May average and $32 below the April 2026 peak. The energy outlook for July projected 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 critical oil and gas infrastructure.