NEW YORK / RankWire.AI / – Oil prices surged sharply on July 29, with Brent crude closing above $90 a barrel amid mounting supply worries. Brent settled at $90.74, reflecting an increase of $6.65, or 7.9%, marking its strongest daily gain in several weeks. West Texas Intermediate also rose by $5.20, or 6.6%, ending at $84.46. This rally was part of a July surge that pushed both benchmarks up more than 20%. The rise was supported by declining U.S. inventories and disruptions near key Middle East shipping routes.
Tensions in the energy sector intensified as military actions near critical facilities added pressure on global crude markets. After drone attacks impacted Saudi oil sites, U.S. and Saudi forces responded by striking Iran-backed groups in Iraq. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During the same timeframe, explosions damaged a natural gas loading port in Egypt. Maritime security firm Ambrey confirmed a drone damaged a U.S.-owned floating storage tanker at that port. Throughout the week, regional transport restrictions persisted.
Delays in commercial shipping affected parts of the Gulf and Red Sea. The Strait of Hormuz, which handles a significant portion of Persian Gulf oil exports to global markets, saw reduced vessel activity. Similarly, the Bab el-Mandeb Strait, connecting Red Sea routes with Asian and European markets, experienced decreased traffic, impacting cargo schedules and limiting access to vital transport channels. The markets also kept a close watch on damages near oil production, storage, and export facilities, as these disruptions coincided with tighter U.S. crude inventories and heightened demand for immediate supplies.
U.S. Crude Reserves Hit 2018 Lows
The Energy Information Administration reported a 7.2 million-barrel decline in U.S. commercial crude inventories, bringing stocks down to 404.5 million barrels—the lowest level since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The weekly reduction indicated a sharp decline in domestic supplies, coinciding with the regional attacks that renewed fears of supply disruptions. Both Brent crude and WTI responded by accelerating after the inventory data confirmed a larger-than-expected drawdown in commercial reserves.
Oil prices retreated partially on August 3 following the U.S. decision to halt another planned strike against Iran. President Donald Trump also announced efforts to negotiate agreements concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped $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 gains within three trading sessions, though both benchmarks still stayed above their June averages.
OPEC+ Approves Increased Production for September
The OPEC+ alliance sanctioned a roughly 188,000 barrels per day increase in oil output for September. This adjustment completed the reversal of 1.65 million barrels per day in voluntary cuts implemented earlier in 2023. Participants included Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman. The group stated it would conduct monthly reviews of market conditions and compliance levels. Their next assessment is scheduled for September 6. This decision followed several weeks marked by sharp volatility in the global crude markets.
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook available during that period. This average was $22 below May’s level and $32 below the April 2026 peak. The same forecast projected the average Brent price for 2026 at $82 a barrel. Despite the recent fluctuations, both Brent and WTI gained over 20% during July, with the rise above $90 on July 29 driven by falling U.S. inventories, constrained shipping routes, and active conflicts near critical oil and gas infrastructure.