NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel amid concerns over tightening supplies and escalating conflicts in the Middle East. The commodity closed at $90.74, reflecting a gain of $6.65, or 7.9%, for the trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, ending the day at $84.46. These gains represented the most significant daily rises for both benchmarks in several weeks. Oil prices continued their rally in July, boosting both contracts by over 20%.
Market pressures intensified as military actions near key production and shipping hubs increased. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Reports also surfaced of attacks on ships near the Strait of Hormuz and on U.S. military 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 installation.
Disruptions to critical shipping routes used by global energy suppliers occurred due to these conflicts. Certain sections of the Gulf and the Red Sea saw limited commercial vessel activity. The Strait of Hormuz, a vital conduit for oil exports from Persian Gulf producers, was affected. The Bab el-Mandeb Strait, connecting Red Sea shipping lanes with Asian and European markets, also experienced delays. Such disruptions impacted cargo schedules and heightened supply concerns, with traders monitoring damage to energy facilities and transport infrastructure.
U.S. crude inventories experience sharp decline
The increase in crude prices on July 29 was reinforced by U.S. inventory data showing a significant drop. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial crude stocks, bringing inventories down to 404.5 million barrels—the lowest since 2018. This total excludes crude stored in the Strategic Petroleum Reserve. The weekly report confirmed a notable reduction in U.S. supplies amid ongoing transport disruptions, military strikes, and damage at regional energy sites.
However, on August 3, oil prices tumbled sharply after the United States halted another planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement regarding Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped by $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. These decreases erased much of the July 29 rally within just three trading sessions.
OPEC+ Approves Additional Output for September Amid Price Declines
In response to falling prices, OPEC+ agreed to increase oil production in September. The group set a target boost of approximately 188,000 barrels per day, marking the end of the 1.65 million barrels per day voluntary cuts enacted earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman were among the members supporting the decision. They also committed to ongoing monthly reviews of market conditions and compliance levels, with their next evaluation scheduled for September 6.
Despite the temporary pullback in August, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel in that month, which is $22 below May’s figures and $32 below the April 2026 peak. The forecast for 2026 in the July energy outlook set the average Brent price at $82 per barrel. The move above $90 on July 29 reflected reduced U.S. inventories, constrained shipping routes, and active conflicts near major oil and gas infrastructure.