NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel as oil markets responded to tightening supplies and renewed conflict in the Middle East. Brent closed at $90.74, rising by $6.65, or 7.9%, during the trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, to end at $84.46. These gains represented the most significant daily increases for both benchmarks in several weeks. Oil prices continued their July rally, boosting both contracts by over 20%.
Escalating military activity near key production and shipping zones added further pressure on the markets. The U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. Additionally, explosions occurred at a natural gas loading site in Egypt during this period. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
The ongoing conflicts disrupted traffic through vital routes used by global energy exporters. Shipping along sections of the Gulf and the Red Sea remained restricted, with the Strait of Hormuz facilitating a significant portion of oil exports from Persian Gulf producers. The Bab el-Mandeb Strait connects the Red Sea shipping lanes to markets in Asia and Europe. Delays on these routes impacted cargo schedules and heightened pressure on available supplies. Traders also monitored damage near energy facilities and transportation infrastructure.
U.S. crude reserves decrease sharply
Data on domestic inventories supported the July 29 rise in crude prices. 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 level since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a substantial weekly decline in available U.S. supplies, amid market assessments of transport disruptions, military strikes, and damage at regional energy sites.
On August 3, oil prices plummeted sharply after the United States suspended another planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent fell by $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within three trading sessions.
OPEC+ increases output for September
As prices declined in August, OPEC+ approved an additional production increase for September, raising its target by approximately 188,000 barrels per day. The decision marked 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 agreed to the new targets. They also stated they would continue monthly reviews of market conditions and production compliance, with the next assessment scheduled for September 6.
Despite the pullback in August, Brent and WTI stayed above their average levels in June. Brent spot crude averaged $85 a barrel in June, which was $22 below May 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 reflected factors such as declining U.S. inventories, constrained shipping routes, and ongoing conflicts near major oil and gas infrastructure.