Major Gulf markets rise as investors weigh Iran stalemate, UAE OPEC exit April

Major stock markets in the Gulf rose in early trading on Wednesday as investors assessed the stalemate in the Iran conflict and the United Arab Emirates’ decision to leave OPEC.

The UAE said on Tuesday that it would exit the oil producers group, dealing a significant blow to the alliance as the energy crisis triggered by the Iran war lays bare growing divisions among Gulf states.

As one of OPEC’s largest producers, the UAE’s departure weakens the group’s grip on global oil supply and deepens its rift with Saudi Arabia, OPEC’s de facto leader.

In Abu Dhabi, the share index advanced 0.8%, lifted by a rally in companies tied to oil major Abu Dhabi National Oil Company (ADNOC).

ADNOC Drilling surged 8.3%, ADNOC Gas advanced 3.1% and ADNOC Logistics & Services jumped 6.8%.

The UAE’s exit from the oil cartel may also allow the Gulf state to raise production once exports resume, since it would no longer be bound by OPEC quotas.

Speculation that the UAE would leave OPEC had persisted for years.

With vast reserves and among the world’s lowest production costs, it can remain profitable even during extended periods of low prices.

Elsewhere, Americana Restaurants International soared 12.9%, a day after reporting a steep rise in first-quarter profit.

Dubai’s main share index added 0.2%, with top lender Emirates NBD rising 1.1% and toll operator Salik climbing 1.2%.

Saudi Arabia’s benchmark index rose 0.1%, led by a 2.4% rise in Saudi Telecom Company as the firm reported a rise in quarterly profit.

By contrast, oil major Saudi Aramco eased 0.2%.

The Qatari index edged 0.1% higher in a choppy trade.

President Donald Trump is unhappy with Tehran’s latest proposal to end the conflict, insisting that nuclear issues be addressed from the start, a US official said.

Separately, the Wall Street Journal reported on Tuesday, citing US officials, that he had directed aides to prepare for a prolonged blockade of Iran.