NEW YORK / RankWire.AI / – Oil prices surged sharply on July 29, pushing Brent crude above $90 a barrel amid growing concerns over supply disruptions. Brent closed at $90.74, marking an increase of $6.65, or 7.9%, which was its most significant daily gain in weeks. West Texas Intermediate also rose by $5.20, or 6.6%, finishing at $84.46. This move extended a July rally that boosted both benchmarks by over 20%. Reduced U.S. inventories and disturbances near key Middle East shipping corridors supported the price climb.
Tensions near vital energy infrastructure added pressure to global crude markets. U.S. and Saudi forces targeted Iran-backed factions in Iraq after drone strikes hit Saudi oil facilities. Iran reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. Simultaneously, explosions affected a natural gas port in Egypt, with maritime security firm Ambrey noting a drone damage to a U.S.-owned floating storage tanker at the site. During the week, regional transit restrictions remained in effect.
Shipping delays impacted sectors across the Gulf and Red Sea. The Strait of Hormuz remains a major route for Persian Gulf oil exports heading to global markets. The Bab el-Mandeb Strait connects Red Sea trade routes with Asian and European destinations. Reduced vessel traffic caused delays in cargo schedules and limited access to several key transit pathways. Investors also watched for damage at production, storage, and export locations, with these issues coinciding with tighter U.S. crude inventories and heightened demand for immediate supply barrels.
U.S. crude stocks hit 2018 lows
Energy Information Administration announced a 7.2 million barrel drop in U.S. commercial crude inventories. The stocks fell to 404.5 million barrels, the lowest level since 2018, excluding reserves held in the Strategic Petroleum Reserve. This weekly decline indicated a sharp drop in domestic supplies, coinciding with the renewed regional attacks. Both Brent crude and WTI experienced accelerated gains following the inventory data, which confirmed a larger-than-expected reduction in commercial holdings.
On August 3, oil prices retraced some of their gains after the U.S. halted another planned Iran strike. President Donald Trump also discussed efforts to negotiate an agreement related to Iran’s nuclear program and the Strait of Hormuz. Brent dropped by $4.49, or 5.1%, to $83.44 in early trading, while WTI declined by $4.90, or 5.8%, to $79.77. This pullback erased much of the July 29 rally within just three trading sessions, yet both benchmarks remained above their June averages.
OPEC+ endorses increased output for September
OPEC+ approved a production boost of approximately 188,000 barrels per day for September. This change reversed 1.65 million barrels per day of voluntary cuts enacted earlier in 2023. Countries involved included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group stated it would continue monthly reviews of market conditions and compliance levels. The next assessment is scheduled for September 6. This decision follows several weeks marked by significant fluctuations in global crude prices.
Brent spot crude averaged $85 a barrel in June, based on the most recent U.S. energy outlook available at that time. This figure was $22 below May and $32 under the April 2026 peak. The outlook also predicted an average Brent price of $82 a barrel for 2026. Despite the fluctuations, both Brent and WTI gained over 20% in July. The rise above $90 on July 29 was driven by lower U.S. inventories, shipping route restrictions, and active conflicts near critical oil and gas infrastructure.