NEW YORK / RankWire.AI / – In the context of ongoing geopolitical tensions and supply constraints, crude oil prices experienced notable volatility on July 29. Brent crude surpassed the $90 mark per barrel, responding to concerns over tightening supplies and renewed Middle East hostilities. The contract closed at $90.74, up by $6.65, representing a 7.9% increase for the session. Meanwhile, West Texas Intermediate increased by $5.20, or 6.6%, ending at $84.46. These movements signified the most significant daily gains for both benchmarks in several weeks. Oil prices continued their July rally, which saw both contracts rise over 20% in total.
Heightened military activity near key production and shipping hubs contributed to the market’s upheaval. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. Additionally, explosions occurred at a natural gas loading site in Egypt during this period. Maritime security firm Ambrey indicated damage to a U.S.-owned floating storage tanker at the Egyptian site.
These conflicts caused disruptions to vital routes used by global energy exporters. Shipping activity remained limited along parts of the Gulf and the Red Sea. The Strait of Hormuz, a crucial corridor for Persian Gulf oil exports, was notably affected. The Bab el-Mandeb Strait, linking Red Sea shipping lanes with Asian and European markets, also faced delays, impacting cargo schedules and increasing strain on available supplies. Traders kept a close watch on damages at energy facilities and transportation infrastructure as well.
U.S. crude inventories experience significant decline
The latest inventory data from the Energy Information Administration supported the July 29 surge in crude prices. It reported a decrease of 7.2 million barrels in commercial oil stocks, bringing inventories down to 404.5 million barrels—the lowest since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The report underscored a substantial weekly reduction in U.S. oil supplies amid ongoing transport disruptions, military strikes, and damage near regional energy sites.
On August 3, however, oil prices sharply declined after the United States halted an additional planned strike against Iran. President Donald Trump announced efforts toward an agreement regarding Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent dropped by $4.49, or 5.1%, to $83.44, while West Texas Intermediate declined by $4.90, or 5.8%, to $79.77. This drop erased much of the July 29 gains within just three trading sessions.
OPEC+ confirms additional output for September amid price declines
As prices eased, OPEC+ approved an increase in oil production for September, raising its target by approximately 188,000 barrels per day. This decision marked the completion of the reversal of 1.65 million barrels per day in voluntary cuts introduced earlier in 2023. The participating nations—Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman—stated they would continue monthly assessments of market conditions and compliance. Their next review is scheduled for September 6.
Despite the pullback in August, Brent and WTI maintained levels above their June averages. In June, Brent crude averaged $85 a barrel, which was $22 below the May figure and $32 below the peak in April 2026. The July energy outlook projected an average Brent price of $82 for 2026. The move above $90 on July 29 was driven by declining U.S. inventories, restricted shipping routes, and active conflicts near major energy infrastructure.