NEW YORK / RankWire.AI / – On July 29, Brent crude prices exceeded $90 a barrel, driven by tighter supply conditions and escalating conflict in the Middle East. The benchmark settled at $90.74, reflecting a gain of $6.65, or 7.9%, within the trading session. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, to close at $84.46. These increases marked the most substantial daily gains for both benchmarks in several weeks. Oil prices also extended a rally in July that saw both contracts rise over 20%.
Enhanced military activity near major production and shipping hubs added pressure on the oil markets. U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq following drone attacks targeting Saudi oil facilities. Iran 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 company Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian installation.
Such conflicts disrupted traffic along key routes used by global energy exporters. Shipping activity remained limited in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant share of oil exports from Persian Gulf producers, experienced congestion, as did the Bab el-Mandeb Strait, connecting Red Sea shipping lanes with Asian and European markets. Delays along these routes affected cargo schedules and heightened pressure on available supplies. Traders also monitored damage reports near energy facilities and transportation infrastructure.
US crude inventories decline sharply
U.S. domestic stock data supported the rise in crude prices on July 29. The Energy Information Administration announced a decline of 7.2 million barrels in commercial oil stocks, bringing inventories down to 404.5 million barrels—the lowest level since 2018. This total excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly decrease in U.S. supplies, coinciding with ongoing transport disruptions, military strikes, and damage near regional energy sites.
However, on August 3, oil prices fell sharply after the United States halted another planned strike against Iran. President Donald Trump announced efforts toward a deal concerning Iran’s nuclear program and the Strait of Hormuz. Brent dropped $4.49, or 5.1%, to $83.44 in early trading, while West Texas Intermediate declined $4.90, or 5.8%, to $79.77. This drop erased most of the July 29 gains within just three trading sessions.
OPEC+ approves additional supply increase for September
Amid declining prices, OPEC+ sanctioned an increase in production for September, raising its output goal by roughly 188,000 barrels per day. This decision completed the reversal of 1.65 million barrels per day of voluntary cuts enacted during 2023. Participating countries such as Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman agreed to continue monthly reviews of market conditions and production compliance. Their next assessment is scheduled for September 6.
Despite the price retreat in August, both Brent and WTI remained above their June averages. In June, Brent spot crude averaged $85 a barrel, which was $22 below May and $32 beneath 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 declining U.S. inventories, constrained shipping routes, and active conflict near critical oil and gas infrastructure.