NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel as oil markets responded to tightening supplies and renewed conflict in the Middle East. Brent closed at $90.74, marking a $6.65, or 7.9%, increase during trading. West Texas Intermediate also climbed, rising $5.20, or 6.6%, to settle at $84.46. These gains represented the strongest daily advances for both benchmarks in several weeks. Oil prices extended a July rally that pushed both contracts up by more than 20%.
Heightened military activity near key production and shipping hubs contributed to market volatility. 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. During this period, explosions struck a natural gas loading facility in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
These conflicts disrupted navigation along crucial routes used by global energy exporters. Shipping in parts of the Gulf and the Red Sea remained limited. The Strait of Hormuz accounts for a significant portion of oil exports from Persian Gulf nations. The Bab el-Mandeb Strait links Red Sea shipping routes with Asian and European markets. Such delays impacted cargo schedules and heightened supply pressures. Traders also monitored damage to energy facilities and transportation infrastructure.
U.S. crude inventories decline significantly
Data on domestic stockpiles supported the July 29 increase in crude prices. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil reserves. Inventory levels fell to 404.5 million barrels, the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a notable weekly decrease in U.S. supplies, amid concerns over transport disruptions, military strikes, and damage to regional energy infrastructure.
On August 3, oil prices dropped sharply after the United States suspended another planned strike against Iran. President Donald Trump also announced efforts toward an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent declined by $4.49, or 5.1%, to $83.44 early in the day. West Texas Intermediate fell $4.90, or 5.8%, to $79.77. Within three trading sessions, this decline erased most of the July 29 gains.
OPEC+ increases output targets for September
As prices receded, OPEC+ approved a further boost in production for September, raising its output goal by approximately 188,000 barrels per day. This move completes the reversal of 1.65 million barrels per day in voluntary cuts implemented during 2023. Key members including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman supported the decision. They also agreed to conduct monthly reviews of market conditions and adherence to production quotas, with the next assessment scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel that month, which was $22 below May and $32 below the peak in April 2026. The July energy forecast projected an average Brent price of $82 per barrel for 2026. The move above $90 on July 29 was driven by declining U.S. inventories, constrained shipping routes, and ongoing conflicts near major oil and gas infrastructure.