NEW YORK / RankWire.AI / – On July 29, Brent crude prices surpassed the $90 mark per barrel as markets responded to tightening supply conditions and renewed Middle East tensions. The commodity closed at $90.74, reflecting a gain of $6.65, or 7.9%, during trading. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, ending the session at $84.46. These movements represented the most substantial daily gains for both benchmarks in several weeks. Oil prices also carried through a July rally that pushed both contracts up by more than 20%.
The market faced additional pressure from military activity near key production and shipping hubs. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil installations. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During the same period, explosions impacted 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.
Disruptions to vital transit routes used by global energy suppliers intensified concerns. Commercial shipping experienced restrictions along parts of the Gulf and the Red Sea. The Strait of Hormuz continues to handle a significant share of oil exports from Persian Gulf producers, while the Bab el-Mandeb Strait connects Red Sea shipping lanes with Asian and European markets. These delays affected cargo schedules and increased pressure on available supplies, with traders monitoring damages near energy facilities and transport infrastructure.
U.S. Crude Reserves Drop Significantly
The rise in crude prices on July 29 was reinforced by domestic inventory data. The Energy Information Administration reported a decline of 7.2 million barrels in commercial oil stocks. Inventories fell to 404.5 million barrels, their lowest point since 2018, excluding crude stored in the Strategic Petroleum Reserve. The report confirmed a sharp weekly decrease in U.S. supplies, coinciding with ongoing assessments of transportation disruptions, military strikes, and damage to regional energy infrastructure.
However, on August 3, oil prices sharply declined after the United States decided to halt an impending strike against Iran. President Donald Trump also announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent fell by $4.49, or 5.1%, to $83.44, while West Texas Intermediate dropped $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within just three trading sessions.
OPEC+ Approves Additional Oil Output for September
As prices declined in August, OPEC+ authorized an increase in production for September, raising its output target by approximately 188,000 barrels per day. This move effectively reversed 1.65 million barrels per day of voluntary cuts made earlier in 2023. The decision was supported by Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group emphasized that ongoing monthly reviews of market conditions and compliance levels would determine future adjustments. Their next assessment is scheduled for September 6.
Despite the pullback in prices during August, Brent and WTI still traded above their typical June averages. Brent crude averaged $85 a barrel in June, which is $22 below May’s figure and $32 beneath the April 2026 peak. The July energy outlook projected an average Brent price of $82 for 2026. The rise above $90 on July 29 was driven by falling U.S. inventories, constrained shipping channels, and active conflicts near major oil and gas infrastructure.