NEW YORK / RankWire.AI / – Oil prices jumped on July 29 as Brent crude settled above $90 a barrel. Renewed Middle East conflict and a steep drop in U.S. inventories drove the advance. Brent gained $6.65, or 7.9%, to close at $90.74 a barrel. West Texas Intermediate rose $5.20, or 6.6%, to $84.46. Both benchmarks recorded their largest daily gains in several weeks. Crude prices had already climbed more than 20% during July.
Oil prices swung after falling U.S. inventories and shipping constraints tightened supply.
Fresh military activity across the region added pressure to global energy markets. U.S. and Saudi forces carried out strikes against Iran-backed groups in Iraq. Officials connected those operations to drone attacks on Saudi oil facilities. Iran also reported attacks on ships near the Strait of Hormuz and on U.S. bases in Jordan. Explosions struck a natural gas loading port in Egypt. Ambrey reported drone damage to a U.S.-owned floating storage tanker at the port.
Shipping disruptions affected major routes that connect Gulf producers with global buyers. Commercial vessel traffic remained limited in parts of the Gulf and Red Sea. The Strait of Hormuz handles a large share of Persian Gulf oil exports. The Bab el-Mandeb Strait links the Red Sea with markets in Asia and Europe. Restrictions along either route can delay cargoes and disrupt refinery schedules. The disturbances occurred as traders tracked damage to energy sites and transport infrastructure.
Falling U.S. inventories support prices
U.S. government data showed a sharp decline in domestic crude supplies. The Energy Information Administration said commercial inventories fell by 7.2 million barrels to 404.5 million. That marked the lowest level since 2018. The total excluded oil held in the Strategic Petroleum Reserve. The inventory report arrived during the same session as the renewed regional attacks. Lower stockpiles added another confirmed supply factor to a market already dealing with interrupted shipping and damaged facilities.
Oil prices reversed course on August 3 after the United States delayed another planned strike against Iran. President Donald Trump also announced efforts to reach an agreement covering Iran’s nuclear program and the Strait of Hormuz. Brent dropped $4.49, or 5.1%, to $83.44 in early trading. WTI fell $4.90, or 5.8%, to $79.77. The decline erased much of the July 29 surge within three trading sessions.
OPEC+ raises September production target
OPEC+ also approved a production increase of about 188,000 barrels per day for September. The decision completed the reversal of 1.65 million barrels per day in voluntary cuts introduced during 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman participated in the agreement. OPEC+ said the group would continue monthly reviews of market conditions and member compliance. The seven producers scheduled their next assessment for September 6.
Despite the early-August decline, Brent and WTI remained above their June averages. The Energy Information Administration said Brent spot crude averaged $85 a barrel in June. That figure stood $22 below May and $32 below the April 2026 peak. The agency’s July outlook placed the average 2026 Brent price at $82 a barrel. The July 29 move above $90 reflected falling U.S. stocks, disrupted transport routes and active conflict near major energy infrastructure.