NEW YORK / RankWire.AI / – Oil prices advanced sharply on July 29, with Brent crude closing above $90 a barrel as supply concerns intensified. Brent settled at $90.74, up $6.65, or 7.9%, for its strongest daily rise in several weeks. West Texas Intermediate gained $5.20, or 6.6%, and ended at $84.46. The move extended a July rally that lifted both benchmarks by more than 20%. Falling U.S. inventories and disruptions near major Middle East shipping routes supported the increase.
Military activity near important energy facilities added pressure to global crude markets. U.S. and Saudi forces struck Iran-backed groups in Iraq after drone attacks hit Saudi oil sites. Iran also reported attacks on vessels near the Strait of Hormuz and on U.S. bases in Jordan. Explosions struck a natural gas loading port in Egypt during the same period. Maritime security company Ambrey said a drone damaged a U.S.-owned floating storage tanker at the facility. Regional transport restrictions remained in place during the week.
Commercial shipping faced delays across sections of the Gulf and Red Sea. The Strait of Hormuz carries a large share of Persian Gulf oil exports to international buyers. The Bab el-Mandeb Strait connects Red Sea routes with markets in Asia and Europe. Reduced vessel traffic affected cargo schedules and limited access to several key transport corridors. Energy markets also monitored damage near production, storage and export sites. Those disruptions coincided with tighter U.S. crude supplies and stronger demand for immediately available barrels.
U.S. oil inventories reach 2018 low
The Energy Information Administration reported a 7.2 million-barrel decline in U.S. commercial crude inventories. Stocks fell to 404.5 million barrels, the lowest total recorded since 2018. The figure excluded crude held in the Strategic Petroleum Reserve. The weekly decrease showed a sharp reduction in available domestic supplies. It also arrived during the same trading session as the renewed regional attacks. Brent crude and WTI both accelerated after the inventory data confirmed the larger than expected draw in commercial holdings.
Oil prices reversed part of the rally on August 3 after the United States paused another planned strike against Iran. President Donald Trump also announced efforts to reach an agreement involving Iran’s nuclear program and the Strait of Hormuz. Brent declined $4.49, or 5.1%, to $83.44 during early trading. West Texas Intermediate fell $4.90, or 5.8%, to $79.77. The pullback removed much of the July 29 increase within three trading sessions, though both benchmarks remained above their June averages.
OPEC+ approves higher September output
OPEC+ approved an increase of about 188,000 barrels per day for September production. The adjustment completed the reversal of 1.65 million barrels per day in voluntary cuts introduced in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman participated in the decision. The producer group said it would continue monthly reviews of market conditions and production compliance. The seven countries scheduled their next assessment for September 6. The output decision followed several weeks of sharp price swings across international crude markets.
Brent spot crude averaged $85 a barrel in June, according to the latest U.S. energy outlook available during the period. That average stood $22 below May and $32 below the April 2026 peak. The same outlook placed the average Brent price for 2026 at $82 a barrel. Brent and WTI still recorded gains of more than 20% during July. The July 29 rise above $90 combined lower U.S. inventories, constrained shipping routes and active conflict near major oil and gas infrastructure.