NEW YORK / RankWire.AI / – Oil prices surged significantly on July 29, with Brent crude closing above $90 a barrel amid escalating concerns over supply disruptions. Brent settled at $90.74, representing an increase of $6.65, or 7.9%, marking its strongest single-day gain in weeks. West Texas Intermediate rose by $5.20, or 6.6%, finishing at $84.46. This rise extended a July rally that boosted both benchmarks by over 20%. Contributing factors included declining U.S. inventories and disturbances near critical Middle East shipping lanes.
Tensions related to military activity near vital energy facilities increased pressure on the global crude oil markets. U.S. and Saudi forces targeted Iran-backed groups in Iraq following drone strikes on Saudi oil facilities. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. military bases in Jordan. During the same period, explosions hit a natural gas loading terminal in Egypt. Maritime security firm Ambrey stated that a drone damaged a U.S.-owned floating storage tanker at the site. Regional shipping restrictions persisted throughout the week.
Delays in commercial shipping affected routes across the Gulf and the Red Sea. The Strait of Hormuz handles a significant portion of Persian Gulf oil exports to global markets. The Bab el-Mandeb Strait connects Red Sea pathways with Asian and European destinations. These disruptions resulted in altered cargo schedules and limited access to key transportation corridors. Additionally, market participants kept a close watch on damage assessments at production, storage, and export facilities, as these disturbances coincided with tighter U.S. crude supplies and heightened demand for readily available barrels.
U.S. Oil Inventories Drop to Lowest Level Since 2018
Energy Information Administration reported a weekly decline of 7.2 million barrels in U.S. commercial crude inventories, bringing the total to 404.5 million barrels — the lowest since 2018. This figure excludes crude stored in the Strategic Petroleum Reserve. The decrease indicated a significant reduction in domestic supply at a time when regional attacks were intensifying. Both Brent crude and WTI experienced upward momentum following the release of the inventory data, which revealed a larger-than-expected drawdown in commercial stocks.
On August 3, oil prices pulled back from their recent highs after the United States paused a 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 fell by $4.49, or 5.1%, to $83.44, while WTI dropped by $4.90, or 5.8%, to $79.77. This correction erased much of the July 29 gains within three trading sessions, although both benchmarks still traded above their June averages.
OPEC+ Approves an Increase in September Production Levels
Brent spot crude averaged $85 a barrel in June, based on the latest U.S. energy outlook available at the time. This average was $22 below May and $32 beneath the April 2026 peak. The forecast also projected an average Brent price of $82 per barrel for 2026. Despite the recent volatility, both Brent and WTI recorded gains exceeding 20% during July. The jump above $90 on July 29 was driven by lower U.S. inventories, restricted shipping routes, and ongoing conflicts near major oil and gas infrastructure.