NEW YORK / RankWire.AI / – Oil prices surged sharply on July 29, with Brent crude closing above $90 a barrel amid mounting supply concerns. Brent settled at $90.74, rising $6.65, or 7.9%, marking its most significant daily gain in weeks. West Texas Intermediate increased by $5.20, or 6.6%, finishing at $84.46. This upward move extended a July rally that boosted both benchmarks by over 20%. The rise was supported by falling U.S. inventories and disruptions near key Middle East shipping lanes.
Tensions escalated as military actions near vital energy facilities added pressure to global crude markets. U.S. and Saudi forces targeted Iran-backed factions in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. bases in Jordan. During this period, explosions struck a natural gas loading port in Egypt, with maritime security firm Ambrey indicating that a drone damaged a U.S.-owned floating storage tanker at the site. Regional transport restrictions persisted throughout the week.
Shipping delays affected sections of the Gulf and Red Sea, with the Strait of Hormuz funneling a significant portion of Persian Gulf oil exports to global markets. The Bab el-Mandeb Strait, connecting Red Sea routes to Asia and Europe, also experienced reduced vessel traffic, causing delays in cargo schedules and limiting access to major transport corridors. Concurrently, energy markets tracked damage near oil production, storage, and export facilities, as these disruptions coincided with tighter U.S. crude supplies and heightened demand for readily available barrels.
U.S. crude stocks hit 2018 lows
Energy Information Administration reported a 7.2 million-barrel drop in U.S. commercial crude inventories, with stocks falling to 404.5 million barrels—the lowest since 2018. This figure excluded crude in the Strategic Petroleum Reserve. The weekly decline highlighted a sharp reduction in domestic supplies and coincided with the regional attacks. Following the inventory data, both Brent crude and WTI accelerated, confirming the larger-than-expected draw in commercial stocks.
On August 3, oil prices pulled back after the United States paused another planned strike against Iran. President Donald Trump also announced efforts toward an agreement concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent decreased by $4.49, or 5.1%, to $83.44, while West Texas Intermediate fell $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 rally within three trading sessions, although both benchmarks still traded above their June averages.
OPEC+ approves increased September output
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook available during this period, which was $22 below May’s average and $32 below the April 2026 peak. The outlook projected an average Brent price of $82 for 2026. Both Brent and WTI recorded gains of more than 20% during July, driven by the rise above $90 on July 29, which was fueled by lower U.S. inventories, shipping constraints, and ongoing conflicts near key oil and gas infrastructure. The OPEC+ coalition approved a boost of about 188,000 barrels per day for September production, completing the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. Participating countries included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group announced they would continue monthly reviews of market conditions and adherence to production levels, with their next assessment scheduled for September 6.