Brent Crude Surges Above $90 as Middle East Tensions Escalate

Oil prices surged on July 29 as tensions in the Middle East escalated. The price of Brent crude rose above $90 per barrel, up $6.16 or 7.33 percent from the previous day's close.

The increase was driven by renewed military action in the region and concerns over global oil supplies. On July 29, the U.S. and Saudi Arabia launched strikes on Iran-backed groups in Iraq, blaming them for drone attacks on Saudi oil facilities.

UBS analyst Giovanni Staunovo said that 'renewed military strikes in the Middle East and Iranian officials reiterating that they want to control shipping activity through the Strait of Hormuz amid depressed oil flows through the strait are lifting oil prices again.'

The U.S. Energy Information Administration reported a drawdown in crude inventories, with stocks falling by 7.2 million barrels last week to 404.5 million barrels, the lowest level since 2018.