NEW YORK / RankWire.AI / – Oil prices surged notably on July 29, with Brent crude closing above $90 a barrel as concerns over supply intensified. Brent ended at $90.74, reflecting an increase of $6.65, or 7.9%, marking its most significant daily gain in several weeks. Meanwhile, West Texas Intermediate climbed by $5.20, or 6.6%, finishing at $84.46. This rally built on July’s upward momentum that pushed both benchmarks up more than 20%. The rise was bolstered by declining U.S. inventories and disturbances near crucial Middle East shipping routes.
Tensions arising from military operations near key energy facilities added further pressure to the global crude oil markets. U.S. and Saudi military forces targeted Iran-backed groups in Iraq following drone assaults on Saudi oil facilities. Iran also reported attacks on vessels close to the Strait of Hormuz and on U.S. military installations in Jordan. During the same period, explosions hit a natural gas loading port in Egypt, with maritime security firm Ambrey confirming that a drone damaged a U.S.-owned floating storage tanker at the site. Restrictions on regional transportation persisted throughout the week.
Cargo shipping experienced delays across sections of the Gulf and Red Sea. The Strait of Hormuz handles a significant portion of Persian Gulf oil exports to global markets, while the Bab el-Mandeb Strait links Red Sea routes with Asian and European markets. The reduced vessel traffic disrupted cargo schedules and limited access to vital transportation corridors. Additionally, market participants kept a close eye on damage to production, storage, and export facilities. These disruptions coincided with tighter U.S. crude supplies and heightened demand for barrels readily available in the market.
U.S. Crude Inventories Hit 2018 Lows
Energy Information Administration reported a 7.2 million barrel drop in U.S. commercial crude inventories. The inventories fell to 404.5 million barrels, marking the lowest level since 2018. This figure excludes crude held in the Strategic Petroleum Reserve. The weekly decline indicated a sharp reduction in domestic supplies, coinciding with the regional attacks that reignited tensions. Both Brent crude and WTI prices surged after the inventory data confirmed a larger-than-expected drawdown of commercial reserves.
On August 3, oil prices retreated partially after the United States halted another planned strike against Iran. President Donald Trump also announced efforts to negotiate a deal concerning Iran’s nuclear program and the Strait of Hormuz. During early trading, Brent declined by $4.49, or 5.1%, to $83.44, while West Texas Intermediate fell by $4.90, or 5.8%, to $79.77. Although these declines erased much of the July 29 rally within three trading sessions, both benchmarks still traded above their June averages.
OPEC+ Approves September Output Increase
Brent spot crude averaged $85 a barrel in June, based on the latest U.S. energy outlook available during this period. This average was $22 below May’s figures and $32 beneath the April 2026 peak. The same report projected an average Brent price of $82 a barrel for 2026. Both Brent and WTI still saw gains exceeding 20% in July, driven by the rise above $90 on July 29, which was supported by lower U.S. inventories, restricted shipping routes, and active conflicts near major oil and gas infrastructure.