NEW YORK / RankWire.AI / – On July 29, Brent crude prices surpassed $90 a barrel, driven by tightening supplies and escalating tensions in the Middle East. The benchmark closed 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%, finishing at $84.46. These gains represented the most substantial daily jumps for both benchmarks in recent weeks. Oil prices continued their July rally, which saw both contracts rise more than 20%.
Market pressures intensified amid military actions near significant production and shipping hubs. Following drone assaults on Saudi oil facilities, U.S. and Saudi forces targeted Iran-backed groups in Iraq. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military installations in Jordan. During this period, explosions damaged a natural gas loading site in Egypt. Maritime security firm Ambrey reported harm to a U.S.-owned floating storage tanker at the Egyptian site.
Disruptions in these conflicts impacted key transit routes used by global energy suppliers. Shipping activity remained limited in parts of the Gulf and the Red Sea, with the Strait of Hormuz carrying a significant portion of oil exports from Persian Gulf producers. The Bab el-Mandeb Strait, connecting Red Sea shipping lanes to markets in Asia and Europe, also experienced delays. These disruptions affected cargo schedules and heightened supply concerns, prompting traders to monitor damage at energy facilities and transportation infrastructure closely.
U.S. Crude Reserves Experience Steep Decline
The rise in crude prices on July 29 was bolstered by new data from the Energy Information Administration. The report showed a 7.2 million-barrel decrease in commercial oil inventories, bringing total stocks down to 404.5 million barrels—the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The weekly data underscored a significant drop in U.S. oil supplies amid ongoing disruptions in transportation, military actions, and damage to regional energy infrastructure.
However, on August 3, oil prices plummeted sharply after the United States halted another planned strike against Iran. President Donald Trump also announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent fell by $4.49, or 5.1%, to $83.44 in early trading. West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This decline erased most of the July 29 gains within just three trading sessions.
OPEC+ Approves Additional Oil Production for September
Amid falling prices, OPEC+ sanctioned an increase in oil output for September, raising its target by roughly 188,000 barrels per day. This move marks the reversal of the 1.65 million barrels per day of voluntary cuts implemented throughout 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman are among the members supporting the decision. The group will continue monthly reviews of market conditions and compliance with production quotas, with the next assessment scheduled for September 6.
Despite the August decline, Brent and WTI prices still remain above their June averages. Brent’s average was $85 a barrel in June, which is $22 below May’s level and $32 beneath the April 2026 peak. The July energy outlook estimated the average Brent price for 2026 at $82 per barrel. The recent move above $90 on July 29 was driven by declining U.S. inventories, shipping route restrictions, and active conflicts near critical energy infrastructure.