US oil inventories fall to precariously low level amid Iran war

U.S. commercial crude oil inventories fell by 4.2 million barrels to 410.5 million barrels in the week ending July 24, 2026, far exceeding analyst forecasts of a 1.5 million barrel decline. The drawdown pushed stockpiles to “precariously low” levels, the Financial Times reported, as the Iran war disrupts oil shipments through the Strait of Hormuz. Gasoline inventories decreased by 1.8 million barrels, while distillate fuel stocks rose by 0.6 million barrels, the Energy Information Administration said in its July 29 report. The larger-than-expected crude draw signals tightening supplies in the world’s largest oil consumer. West Texas Intermediate crude futures rose sharply, reflecting heightened market volatility. The turmoil in the Strait of Hormuz has raised fears of prolonged supply outages, and low inventory levels could amplify price swings if disruptions persist. Traders are closely monitoring the Iran conflict and any potential releases from strategic reserves to offset shortfalls.