NEW YORK / RankWire.AI / – Oil prices surged on July 29, pushing Brent crude above $90 a barrel as renewed Middle East fighting and tighter U.S. inventories lifted global benchmarks. Brent futures settled at $90.74, up $6.65, or 7.9%. West Texas Intermediate gained $5.20, or 6.6%, to $84.46. Both contracts posted their strongest daily advances in several weeks. The contracts had already gained more than 20% during July as regional supply disruptions affected energy markets.
The rally followed fresh U.S. and Saudi strikes against Iran-backed groups in Iraq. Officials linked the attacks to drone strikes on Saudi oil facilities. Iran said it fired on ships in the Strait of Hormuz and at U.S. bases in Jordan. Explosions also hit a natural gas loading port in Egypt. Maritime security firm Ambrey reported drone damage to a U.S.-owned floating storage tanker at the site. Commercial traffic remained limited in key Gulf and Red Sea shipping corridors during the week.
U.S. government data added another source of support for crude prices. The Energy Information Administration said commercial crude stocks fell by 7.2 million barrels to 404.5 million. That level marked the lowest U.S. inventory reading since 2018. The stock figure covered commercial holdings and excluded barrels in the Strategic Petroleum Reserve. The inventory report arrived on the same day as the price surge and renewed airstrikes, adding confirmed supply data to a market already facing regional shipping disruptions.
Supply routes and inventories tighten
The Strait of Hormuz carries major Persian Gulf exports and faced reduced vessel traffic during the week. The Bab el-Mandeb Strait also drew attention because it links the Red Sea with major Asian and European markets. Both routes serve refineries and fuel markets across several continents. OPEC’s monitoring committee later stressed the need to protect international maritime routes and energy infrastructure. The committee said disruptions to those assets affect supply availability, increase repair costs and add volatility to global energy markets.
The late-July surge proved brief as oil prices reversed sharply on August 3. Brent fell $4.49, or 5.1%, to $83.44 in early trading. WTI dropped $4.90, or 5.8%, to $79.77. The decline followed President Donald Trump’s decision to hold off on a new U.S. strike against Iran. He also announced an effort to reach an agreement addressing Iran’s nuclear program and the Strait of Hormuz. The reversal erased much of the July 29 advance within three trading sessions.
OPEC+ approves September supply increase
Supply policy also shifted over the weekend. OPEC+ approved a September production quota increase of about 188,000 barrels per day. The adjustment completes the rollback of 1.65 million barrels per day in voluntary cuts introduced in 2023. Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman took part in the decision. The group said members would continue monthly reviews of market conditions and production compliance. The seven countries scheduled their next market review for September 6.
The July rally and August pullback left crude prices above their June averages. The Energy Information Administration reported that Brent spot crude averaged $85 a barrel in June. That was $22 below May and $32 below the April 2026 peak. The agency’s July outlook placed the average Brent price for 2026 at $82 a barrel. Brent and WTI still gained more than 20% during July. On July 29, the move above $90 coincided with supply disruptions, shipping constraints and falling U.S. crude stocks.