U.S. oil drilling has experienced its longest sustained increase in nearly four years, with the number of rigs expanding for six consecutive weeks. This uptrend, which saw the rig count reach 431, is primarily attributed to a surge in crude prices. These elevated prices are a direct consequence of the war in Iran and ongoing disruptions in the Strait of Hormuz, making drilling more economically attractive for operators.
According to data from Baker Hughes Co., the U.S. oil rig count rose by two this week to 431, marking the longest growth streak since mid-2022. Earlier reports indicated that as of May 22, 2026, the rig count had jumped by 10 to 425, the largest weekly increase since April 2022. By June 5, 2026, the total U.S. rotary rig count, including gas and miscellaneous rigs, increased by one to 563, with oil rigs specifically climbing by two to 431, while natural gas rigs dipped by one.
The geopolitical tensions, particularly those impacting the Strait of Hormuz and resulting in higher Brent and WTI crude prices, have significantly improved the economics of drilling. This has prompted operators to deploy additional rigs, especially in liquids-rich plays across U.S. shale basins. Analysts anticipate that if regional constraints persist, this support for renewed drilling activity could continue throughout the remainder of 2026.
More broadly, the total U.S. rotary drilling rig count by July 2, 2026, stood at 580, an increase of seven from the previous week and 41 higher than a year ago. Oil-specific rigs accounted for 445 of this total on July 2, up by five from the prior week. The Permian Basin, the nation's most active, saw its rig count rise by three to 261, though this is four lower than a year ago.
