NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel amid market reactions to tightening supplies and escalating Middle East conflicts. The benchmark settled at $90.74, reflecting a gain of $6.65, or 7.9%, during the trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, ending at $84.46. These gains marked the most substantial daily rises for both benchmarks in several weeks. Oil prices also carried forward a rally from July that boosted both contracts by more than 20%.
Heightened military activity near key production and shipping hubs added pressure to the oil markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes 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 timeframe, 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.
The conflict disrupted traffic on vital routes used by global energy suppliers. Commercial shipping remained limited in sections of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant portion of oil exports from Persian Gulf producers, was affected. The Bab el-Mandeb Strait, connecting Red Sea shipping lanes to Asian and European markets, also experienced delays. These disruptions impacted cargo schedules and heightened demand on available supplies. Traders kept a close eye on damages near energy facilities and transportation infrastructure.
U.S. Crude Oil Inventories Decline Significantly
The rise in crude prices on July 29 was supported by U.S. inventory data. The Energy Information Administration reported a decline of 7.2 million barrels in commercial oil stocks. Inventories dropped to 404.5 million barrels, their lowest level since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The report confirmed a substantial weekly decrease in available U.S. supplies, amid concerns over transport disruptions, military strikes, and damage near regional energy sites.
Subsequently, oil prices sharply declined on August 3 after the United States halted another planned strike against Iran. President Donald Trump also announced efforts to reach an agreement on Iran’s nuclear program and the Strait of Hormuz. Brent fell by $4.49, or 5.1%, to $83.44 during early trading. West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This drop erased much of the July 29 increase within just three trading sessions.
OPEC+ Approves Additional Oil Production for September as Prices Retreat
OPEC+ approved a further increase in output for September amidst declining prices. The group agreed to raise its production target by approximately 188,000 barrels per day. This decision completed the reversal of 1.65 million barrels per day in voluntary cuts made earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the agreement. Members stated they would continue monthly reviews of the market and compliance with production quotas. Their next assessment is scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their June averages. Brent crude averaged $85 a barrel in June, which was $22 below May’s level and $32 below the April 2026 peak. The July energy outlook forecasted an average Brent price of $82 a barrel for 2026. The move above $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and active conflicts near key oil and gas infrastructure.