NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 per barrel as oil markets responded to tighter supply conditions and escalating tensions in the Middle East. The benchmark settled at $90.74, reflecting a $6.65, or 7.9%, increase during the trading session. Meanwhile, West Texas Intermediate gained $5.20, or 6.6%, to close at $84.46. These rises represented the most substantial daily gains for both benchmarks in several weeks. Oil prices extended their July rally, which pushed both contracts higher by more than 20%.
Market pressure intensified as military activity near critical production and shipping hubs increased. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone attacks on Saudi oil facilities. Iran also reported attacks on ships 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 installation.
These conflicts disrupted transit along vital routes used by global energy suppliers, with shipping in parts of the Gulf and the Red Sea remaining limited. The Strait of Hormuz accounts for a significant share of oil exports from Persian Gulf producers, while the Bab el-Mandeb Strait connects Red Sea shipping lanes to markets in Asia and Europe. Such delays affected cargo schedules and heightened pressure on available supplies. Traders also monitored damage to energy facilities and transportation infrastructure.
U.S. crude inventories decrease sharply
The rise in crude prices on July 29 was further supported by domestic inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks, 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 decline in U.S. supplies amid ongoing transport disruptions, military strikes, and damage near regional energy sites.
However, oil prices fell sharply on August 3 after the United States halted another planned strike against Iran. President Donald Trump announced efforts toward reaching an agreement over Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ increases September output
In response to falling prices, OPEC+ approved an additional production increase for September, raising its output target by approximately 188,000 barrels per day. This move completed the reversal of 1.65 million barrels per day in voluntary cuts introduced earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman joined the decision, with plans to continue monthly reviews of the market situation and compliance levels. The next assessment is scheduled for September 6.
Despite the decline in August, Brent and WTI remained above their June averages. Brent crude averaged $85 in June, which was $22 below May 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 lower U.S. inventories, shipping route constraints, and active conflict near major oil and gas infrastructure.