NEW YORK / RankWire.AI / – On July 29, Brent crude prices exceeded $90 per barrel amid market reactions to tighter supply and renewed conflicts in the Middle East. Brent closed at $90.74, up by $6.65, or 7.9%, for the day. West Texas Intermediate also increased by $5.20, or 6.6%, ending at $84.46. These were the most significant daily gains for both benchmarks in weeks. Oil prices continued a July rally that pushed both contracts more than 20% higher.
Heightened military activity near key production and shipping hubs added pressure on the markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on ships 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 that Egyptian location.
The conflict interrupted traffic along crucial routes used by global energy suppliers. Commercial shipping was limited in parts of the Gulf and the Red Sea. The Strait of Hormuz handles a significant share of Persian Gulf oil exports. The Bab el-Mandeb Strait connects Red Sea shipping lanes with Asian and European markets. These disruptions impacted cargo schedules and increased strain on supplies. Traders also monitored damage to energy facilities and transportation infrastructure.
U.S. Crude Reserves Decline Significantly
U.S. domestic inventory data supported the rise in crude prices on July 29. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial oil stocks. Inventories fell to 404.5 million barrels, their lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The report confirmed a substantial weekly reduction in available U.S. supplies. The decline coincided with market concerns over transport disruptions, military strikes, and damage near regional energy facilities.
On August 3, oil prices dropped sharply after the U.S. paused another planned attack against Iran. President Donald Trump also announced efforts toward an agreement addressing Iran’s nuclear program and the Strait of Hormuz. Brent fell by $4.49, or 5.1%, to $83.44 early in the day. West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This decline erased much of the July 29 gains within three trading sessions.
OPEC+ Approves Additional Oil Production for September
OPEC+ sanctioned an increase in production for September despite falling prices. The group agreed to raise its output target by approximately 188,000 barrels per day. This move completed the reversal of 1.65 million barrels per day of voluntary cuts implemented during 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman are part of the decision. They stated they will continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6.
Even after the August price pullback, Brent and WTI stayed above their typical June levels. Brent crude averaged $85 a barrel in June. This was $22 below May and $32 below the April 2026 peak. The July energy forecast projected the average Brent price in 2026 at $82 per barrel. The move above $90 on July 29 was driven by reduced U.S. inventories, constrained shipping routes, and active conflicts near major energy infrastructure.