NEW YORK / RankWire.AI / – Oil prices saw a notable increase on July 29, with Brent crude closing above the $90 mark per barrel amid rising concerns over supply disruptions. Brent finished at $90.74, representing a $6.65 rise, or 7.9%, marking its most substantial single-day gain in several weeks. Meanwhile, West Texas Intermediate climbed $5.20, or 6.6%, ending the session at $84.46. This surge built on July’s rally, which pushed both benchmarks higher by more than 20%. Support for the upward trend stemmed from declining U.S. inventories and interruptions along key Middle Eastern shipping corridors.
Geopolitical tensions near critical energy infrastructure intensified pressure on global crude markets, as military actions took place in the region. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Reports from Iran indicated attacks on vessels near the Strait of Hormuz and on U.S. military installations in Jordan. During the same period, explosions damaged a natural gas loading port in Egypt, with maritime security firm Ambrey confirming that a drone struck a U.S.-owned floating storage tanker at the site. Meanwhile, regional transportation restrictions persisted throughout the week, affecting shipping operations.
Cargo movement across parts of the Gulf and the Red Sea encountered delays, with the Strait of Hormuz continuing to serve as a major conduit for Persian Gulf oil exports to global markets. Additionally, the Bab el-Mandeb Strait links Red Sea shipping routes with Asian and European markets. These disruptions led to delays in cargo schedules and limited access to vital transit corridors. Market participants also kept a close eye on damages at production, storage, and export facilities, as these issues coincided with tightening U.S. crude inventories and heightened demand for readily available barrels.
U.S. crude inventories hit 2018 lows
Energy Information Administration data showed a reduction of 7.2 million barrels in U.S. commercial crude stocks, bringing the total down to 404.5 million barrels—the lowest level since 2018. This figure excludes stocks stored in the Strategic Petroleum Reserve. The weekly decline indicated a sharp drop in domestic supplies available for commercial use, which coincided with the regional attacks that renewed during the same trading session. Following the inventory report, both Brent crude and WTI prices accelerated, as the data confirmed a larger-than-expected drawdown in commercial inventories.
However, on August 3, prices pulled back after the United States halted another planned strike against Iran. President Donald Trump announced efforts to negotiate an agreement concerning Iran’s nuclear program and the Strait of Hormuz, leading to a decline of $4.49, or 5.1%, in Brent to $83.44 in early trading. WTI dropped $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 rally within three trading sessions, though both benchmarks still remained above their June averages.
OPEC+ approves an increase in September oil output
The OPEC+ alliance approved a production increase of approximately 188,000 barrels per day for September, completing the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. The decision involved Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, all of whom committed to ongoing monthly assessments of market conditions and compliance levels. Their next review is scheduled for September 6. This adjustment comes after several weeks of significant price fluctuations across the international crude markets.
Brent spot crude averaged $85 a barrel during June, according to the most recent U.S. energy outlook available at that time, which was $22 lower than May and $32 below the April 2026 peak. The same report projected an average Brent price of $82 per barrel for 2026. Despite the recent volatility, both Brent and WTI recorded gains of over 20% during July, driven by the rise past $90 on July 29, supported by decreasing U.S. inventories, shipping restrictions, and active conflicts near critical oil and gas infrastructure.