NEW YORK / RankWire.AI / – Oil prices surged sharply on July 29, with Brent crude closing above $90 a barrel amid escalating supply concerns. Brent settled at $90.74, rising by $6.65, or 7.9%, marking its most significant daily increase in several weeks. West Texas Intermediate increased by $5.20, or 6.6%, ending at $84.46. The rally extended a July upward trend that saw both benchmarks gain more than 20%. Reduced U.S. inventories and disruptions along key Middle East shipping routes supported this upward movement.
Tensions near major energy facilities added pressure to the global crude market. U.S. and Saudi forces targeted Iran-backed factions in Iraq after drone strikes impacted Saudi oil facilities. Iran also reported attacks on vessels close to the Strait of Hormuz and on U.S. bases in Jordan. During the same period, explosions struck a natural gas port in Egypt. Maritime security firm Ambrey stated that a drone damaged a U.S.-owned floating storage tanker at the port. Transportation restrictions in the region persisted throughout the week.
Delays in commercial shipping occurred across sections of the Gulf and the Red Sea. The Strait of Hormuz remains a critical route for Persian Gulf oil exports to international markets. The Bab el-Mandeb Strait links Red Sea routes with destinations in Asia and Europe. The reduced vessel traffic impacted cargo schedules and limited access to several vital shipping corridors. Additionally, the market observed damage near key production, storage, and export sites, coinciding with tighter U.S. crude supplies and heightened demand for readily available barrels.
U.S. Oil Inventories Drop to 2018 Levels
Energy Information Administration reported a decline of 7.2 million barrels in U.S. commercial crude inventories. The stocks fell to 404.5 million barrels, the lowest level recorded since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The weekly decrease highlighted a significant reduction in domestic supplies available. It coincided with the regional attacks and caused both Brent crude and WTI to accelerate after the inventory data confirmed a larger-than-expected drawdown in commercial holdings.
On August 3, oil prices retraced part of their July rally after the United States halted another planned strike against Iran. President Donald Trump announced efforts aimed at reaching an agreement involving Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent declined by $4.49, or 5.1%, to $83.44, while West Texas Intermediate fell by $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 surge within three trading sessions, although both benchmarks still traded above their June averages.
OPEC+ Endorses Elevated Oil Output for September
OPEC+ approved an increase of approximately 188,000 barrels per day for September’s oil production. This decision marked the reversal of 1.65 million barrels per day in voluntary cuts introduced earlier in 2023. Participating countries included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group stated it would continue monthly evaluations of market trends and compliance with production targets. The next review is scheduled for September 6. The decision followed several weeks of notable price fluctuations across international crude markets.
Brent spot crude had an average price of $85 a barrel in June, based on the latest U.S. energy outlook available during that period. This figure was $22 below May’s average and $32 below the peak in April 2026. The forecast also predicted an average Brent price of $82 per barrel for 2026. Despite the volatility, both Brent and WTI experienced gains exceeding 20% during July. The rise above $90 on July 29 was driven by declining U.S. inventories, shipping route restrictions, and ongoing conflicts near vital oil and gas infrastructure.