NEW YORK / RankWire.AI / – On July 29, Brent crude prices exceeded $90 per barrel as markets responded to tightening supplies and renewed conflict in the Middle East. The benchmark settled at $90.74, reflecting an increase of $6.65, or 7.9%, during trading. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, to close at $84.46. These gains marked the most significant daily rise for both benchmarks in several weeks. Oil prices also extended their July rally, rising more than 20% for both contracts.
Market pressure intensified as military activity near major oil production and shipping hubs increased. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military sites in Jordan. During the same period, explosions struck a natural gas loading facility in Egypt, with maritime security firm Ambrey reporting damage to a U.S.-owned floating storage tanker at the Egyptian site.
These conflicts disrupted transportation along key routes vital for global energy exports. Limited commercial shipping persisted through sections of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant portion of oil exports from Persian Gulf producers, and the Bab el-Mandeb Strait, linking Red Sea shipping lanes with Asian and European markets, experienced delays. Such disruptions impacted cargo schedules and increased pressure on available supplies. Traders also monitored damage to energy infrastructure and transportation facilities.
U.S. crude inventories decline sharply
The rise in crude prices on July 29 was supported by domestic inventory data. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial crude stocks. Inventories fell to 404.5 million barrels, reaching their lowest levels since 2018. This figure excluded crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly reduction in U.S. supplies amid ongoing transport issues, military strikes, and damage at regional energy facilities.
However, on August 3, oil prices experienced a sharp decline after the United States paused a planned strike against Iran. President Donald Trump also announced efforts to reach an agreement regarding Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped $4.49, or 5.1%, to $83.44. West Texas Intermediate fell $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ increases output for September amid declining prices
In response to falling prices, OPEC+ approved an additional increase in production for September, raising its target by approximately 188,000 barrels per day. This move completed the reversal of 1.65 million barrels per day in voluntary cuts implemented during 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman joined the decision, stating they would continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6.
Despite the August decline, both Brent and WTI prices stayed above their June averages. Brent crude traded at an average of $85 a barrel in June, which is $22 below the May average and $32 below the peak reached in 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 declining U.S. inventories, constrained shipping routes, and ongoing conflicts near major oil and gas infrastructure.