NEW YORK / RankWire.AI / – On July 29, Brent crude prices surpassed the $90 mark per barrel, driven by fears of tighter supplies and escalating conflicts in the Middle East. The benchmark finished at $90.74, marking a $6.65 increase, or 7.9%, during trading. Meanwhile, West Texas Intermediate rose by $5.20, or 6.6%, closing at $84.46. These gains represented the most substantial daily rises for both indices in several weeks. Oil prices also extended a rally from July that boosted both contracts by over 20%.
Heightened military activity near vital production and transportation hubs added further pressure. The U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. military installations in Jordan. During the same timeframe, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
Disruptions in traffic flow along key routes used by global energy producers intensified concerns. Commercial shipping was restricted in parts of the Gulf and the Red Sea. The Strait of Hormuz accounts for a significant portion of oil exports from Persian Gulf countries, while the Bab el-Mandeb Strait connects Red Sea shipping lanes with markets in Asia and Europe. These route delays impacted cargo schedules and added strain on available supplies. Traders also monitored damages near energy infrastructure and transportation facilities.
U.S. crude inventories decrease sharply
The rise in crude prices on July 29 was supported by domestic inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks, bringing inventories down to 404.5 million barrels — their lowest level since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly decline in U.S. supplies, occurring amid ongoing transport disruptions, military strikes, and damage near regional energy sites.
However, on August 3, oil prices plummeted sharply after the United States suspended plans for another strike against Iran. President Donald Trump also announced efforts toward a potential agreement regarding Iran’s nuclear program and the Strait of Hormuz. Brent dropped by $4.49, or 5.1%, to $83.44 in early trading. West Texas Intermediate declined by $4.90, or 5.8%, to settle at $79.77. This decline erased much of the July 29 rally within just three trading sessions.
OPEC+ approves additional production for September
In response to the recent price dip, OPEC+ sanctioned a further increase in oil output for September, raising the target by approximately 188,000 barrels per day. This move effectively reversed the voluntary cuts of 1.65 million barrels daily implemented earlier in 2023. Participating members include Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group announced they would continue monthly assessments of market conditions and compliance levels, with the next review scheduled for September 6.
Despite the August decline, both Brent and WTI prices remained above their typical June averages. Brent crude averaged around $85 a barrel in June, which was $22 below May’s levels and $32 below the April 2026 peak. The July energy outlook projected the average Brent price for 2026 at $82 per barrel. The move past $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and active conflicts near crucial oil and gas infrastructure.