NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed the $90 mark before dropping back, driven by supply tightening and renewed conflict in the Middle East. The benchmark settled at $90.74, marking an increase of $6.65, or 7.9%, for the session. West Texas Intermediate also rose, closing at $84.46 after climbing $5.20, or 6.6%. These moves represented the strongest daily gains for both benchmarks in several weeks. Oil prices extended their July rally, which saw both contracts surge more than 20%.
The market faced additional pressure as military operations near key production and shipping hubs intensified. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During the same period, explosions struck 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 important routes used by global energy suppliers. Shipping activity remained limited in parts of the Gulf and the Red Sea. The Strait of Hormuz, which handles a significant share of oil exports from Persian Gulf nations, was impacted. Similarly, the Bab el-Mandeb Strait, connecting Red Sea shipping lanes with Asian and European markets, experienced delays. Such disruptions affected cargo schedules and heightened supply concerns. Traders also monitored damage to energy facilities and transport infrastructure in the region.
U.S. crude inventories see notable decline
The rise in crude prices on July 29 was supported by U.S. inventory data. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial oil stocks. Stocks fell to 404.5 million barrels, their lowest since 2018, excluding crude stored in the Strategic Petroleum Reserve. The report confirmed a significant weekly drop in U.S. supplies amid ongoing concerns over transportation disruptions, military strikes, and damage to regional energy infrastructure.
Following this, oil prices declined sharply on August 3 after the U.S. halted another planned strike against Iran. President Donald Trump also announced efforts toward an agreement on Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped $4.49, or 5.1%, to $83.44, while West Texas Intermediate fell $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within three trading sessions.
OPEC+ approves additional output for September as prices dip
In response to falling prices, OPEC+ authorized a further increase in production for September. The group decided to raise its target by approximately 188,000 barrels per day. This move marked the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the agreement. The members committed to monthly reviews of market conditions and compliance levels, with the next assessment scheduled for September 6.
Despite the pullback in August, Brent and WTI prices remained above their June averages. Brent crude averaged $85 a barrel in June, which was $22 below May’s levels and $32 below the April 2026 peak. The July energy outlook projected an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by reduced U.S. inventories, restricted shipping routes, and active conflicts near major oil and gas infrastructure.