NEW YORK / RankWire.AI / – On July 29, Brent crude surpassed $90 a barrel as the oil market responded to tighter supply conditions and renewed conflict in the Middle East. The benchmark closed at $90.74, reflecting a gain of $6.65, or 7.9%, over 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 advances for both indices in several weeks. Oil prices also extended a rally from July that boosted both contracts by over 20%.
Escalating military operations near key production and shipping hubs exerted additional pressure on the markets. 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 U.S. military bases in Jordan. Additionally, explosions impacted a natural gas loading site in Egypt during this period. Maritime security firm Ambrey reported damage to a U.S.-owned floating storage tanker at the Egyptian site.
The ongoing hostilities disrupted navigation along major routes vital for global energy exports. Commercial shipping activity remained constrained in parts of the Gulf and the Red Sea. The Strait of Hormuz, responsible for a significant portion of Persian Gulf oil shipments, and the Bab el-Mandeb Strait, connecting Red Sea shipping lanes to Asian and European markets, experienced delays. These disruptions affected cargo schedules and heightened supply pressures. Traders monitored damage to energy facilities and transportation infrastructure closely.
U.S. crude inventories decline sharply
Data from the Energy Information Administration supported the July 29 increase in crude prices. The report indicated a 7.2 million-barrel reduction in commercial oil stocks, bringing inventories down to 404.5 million barrels — their lowest level since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The data confirmed a significant weekly decrease in U.S. supplies, coinciding with market assessments of transport disruptions, military strikes, and damages near regional energy facilities.
On August 3, oil prices tumbled sharply after the United States halted a planned strike against Iran. President Donald Trump also announced negotiations aimed at an agreement concerning 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 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 Supply for September
As prices declined, OPEC+ authorized a further increase in production for September, raising its target by approximately 188,000 barrels per day. This decision marked the reversal of 1.65 million barrels per day of voluntary cuts implemented during 2023. Key members such as Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the agreement. They also agreed to continue monthly evaluations of market trends and compliance levels, with the next review scheduled for September 6.
Despite the drop in prices during August, Brent and WTI stayed above their typical June averages. In June, Brent crude averaged $85 a barrel, which is $22 below May’s figures and $32 under the April 2026 peak. The energy outlook for July predicted an average Brent price of $82 for 2026. The move past $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and active conflicts near critical oil and gas infrastructure.