NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel amid concerns over tighter supplies and renewed conflict in the Middle East. The contract closed at $90.74, rising by $6.65, or 7.9%, during trading. West Texas Intermediate increased by $5.20, or 6.6%, ending at $84.46. These gains marked the most significant daily increases for both benchmarks in recent weeks. Oil prices also extended their July rally, which saw both contracts climb more than 20%.
Market fears grew due to military activity near major oil production and shipping hubs. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. During the same period, explosions hit 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 clashes disrupted navigation along key routes used by global energy exporters. Shipping in parts of the Gulf and Red Sea remained limited. The Strait of Hormuz is a crucial route for oil exports from Persian Gulf countries. The Bab el-Mandeb Strait connects Red Sea shipping lanes to markets in Asia and Europe. Delays on these routes affected cargo schedules and increased pressure on supplies. Traders monitored damage to energy facilities and transport infrastructure closely.
US Crude Inventories Drop Significantly
U.S. inventory data supported the rise in crude prices seen on July 29. The Energy Information Administration reported a decline of 7.2 million barrels in commercial oil stocks. Inventories fell to 404.5 million barrels, the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a large weekly decrease in U.S. supplies. It arrived amid ongoing concerns about transportation disruptions, military strikes, and damage near key energy sites.
However, prices dropped sharply on August 3 after the U.S. halted a planned strike against Iran. President Donald Trump announced efforts toward an agreement concerning Iran’s nuclear program and the Strait of Hormuz. Brent crude declined by $4.49, or 5.1%, to $83.44 early that day. WTI fell by $4.90, or 5.8%, to $79.77. Within three trading sessions, most of the July 29 gains had been erased.
OPEC+ Approves Additional Output for September
OPEC+ authorized an increase in oil production for September amid falling prices. The group agreed to raise its target by roughly 188,000 barrels per day. This decision reversed 1.65 million barrels per day of voluntary cuts made during 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman joined the move. They also agreed to review market conditions and production compliance monthly. Their next assessment is scheduled for September 6.
Despite the decline in early August, Brent and WTI prices remained above June averages. Brent crude averaged $85 a barrel in June. This is $22 below May’s average and $32 below the April 2026 peak. The July energy outlook projects an average Brent price for 2026 at $82 a barrel. The rise above $90 on July 29 was driven by reduced U.S. inventories, restricted shipping routes, and active conflicts near vital energy infrastructure.