NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark per barrel as the oil market responded to tighter supplies and renewed conflict in the Middle East. The benchmark settled at $90.74, marking a gain of $6.65, or 7.9%, for the session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, concluding at $84.46. These gains represented the most substantial daily increases for both benchmarks in several weeks. Oil prices continued their July rally, which boosted both contracts by over 20%.
The market faced added pressure from military actions near major oil production and shipping hubs. Following drone attacks on Saudi oil facilities, U.S. and Saudi forces responded with strikes against Iran-backed groups in Iraq. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. military bases in Jordan. During the same period, 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 facility.
These hostilities disrupted traffic along vital routes used by global energy exporters. Shipping in parts of the Gulf and the Red Sea remained restricted. The Strait of Hormuz is responsible for a significant share of oil exports from Persian Gulf producers. The Bab el-Mandeb Strait connects Red Sea shipping lanes to markets in Asia and Europe. Delays along these passages affected cargo schedules and increased pressure on available supplies. Traders also monitored damage near energy infrastructure and transportation facilities.
US crude inventories decline sharply
The rise in crude prices on July 29 was reinforced by U.S. inventory data. The Energy Information Administration reported a reduction of 7.2 million barrels in commercial oil stocks. Total inventories fell to 404.5 million barrels, their lowest since 2018. This figure excluded crude held in the Strategic Petroleum Reserve. The report confirmed a significant weekly decrease in U.S. oil supplies, arriving amid market concerns over transport disruptions, military strikes, and damage to regional energy sites.
On August 3, however, oil prices saw a sharp decline after the U.S. halted another planned strike against Iran. President Donald Trump also announced initiatives aimed at reaching an agreement on 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 fell $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 increase within just three trading sessions.
OPEC+ approves additional output increase for September
Despite the recent pullback, OPEC+ approved a further production increase for September, as oil prices declined. The group agreed to raise its output target by approximately 188,000 barrels per day, completing the reversal of 1.65 million barrels per day in voluntary cuts enacted earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the decision. The members indicated they would continue monthly reviews of market conditions and compliance with production quotas, with their next assessment scheduled for September 6.
Although the August drop occurred, Brent and WTI prices remained above their average levels in June. Brent crude averaged $85 a barrel in June, which was $22 below May and $32 below the peak of April 2026. The July energy outlook projected an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by lower U.S. inventories, restricted shipping routes, and ongoing conflict near key oil and gas infrastructure.