NEW YORK / RankWire.AI / – On July 29, in the energy markets, Brent crude surpassed the $90 mark per barrel, driven by concerns over tighter supply conditions and escalating tensions in the Middle East. The contract settled at $90.74, reflecting a rise of $6.65, or 7.9%, within the trading session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, to close at $84.46. These gains marked the most substantial daily increases for both benchmarks in several weeks. Oil prices also extended their July rally, which saw both contracts rise over 20%.
The market was further pressured by military activity near vital production and transportation hubs. U.S. and Saudi forces launched strikes against Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During this period, explosions struck a natural gas loading site in Egypt, with maritime security firm Ambrey reporting damage to a U.S.-owned floating storage tanker at the Egyptian installation.
Such conflicts disrupted key transit routes used by global energy suppliers. Commercial shipping faced restrictions in sections of the Gulf and the Red Sea. The Strait of Hormuz, responsible for a significant portion of oil exports from Persian Gulf producers, and the Bab el-Mandeb Strait, which connects Red Sea shipping lanes with Asian and European markets, both experienced delays. These disruptions impacted cargo schedules and heightened supply pressures. Traders also monitored damage reports near energy facilities and transportation infrastructure.
U.S. crude reserves decline sharply
The rise in crude prices on July 29 was supported by U.S. inventory data showing a significant decline. The Energy Information Administration reported a decrease of 7.2 million barrels in commercial oil stocks, bringing total inventories down to 404.5 million barrels—the lowest since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The report confirmed a notable weekly drop in U.S. oil supplies amid ongoing transport disruptions, military strikes, and damage to regional energy infrastructure.
However, on August 3, oil prices experienced a sharp decline after the United States paused another planned action 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 fell by $4.49, or 5.1%, to $83.44, and West Texas Intermediate dropped by $4.90, or 5.8%, to $79.77. This decrease erased much of the July 29 gains within just three trading sessions.
OPEC+ approves additional output for September amid price declines
In response to falling prices, OPEC+ endorsed a further increase in oil production for September. The alliance agreed to boost its output target by approximately 188,000 barrels daily, completing the reversal of 1.65 million barrels per day in voluntary cuts made earlier in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman participated in the decision. The group stated they would continue monthly assessments of market conditions and adherence to production quotas, with the next review scheduled for September 6.
Despite the August correction, Brent and WTI prices remained above their June averages. In June, Brent crude averaged $85 a barrel, which was $22 below the May average and $32 below the April 2026 peak. The July energy forecast estimated the average Brent price for 2026 at $82 per barrel. The move past $90 on July 29 was driven by lower U.S. inventories, restricted shipping routes, and ongoing conflicts near key oil and gas facilities.