Mideast Stocks: Most Gulf markets rise as investors assess Iran stalemate, UAE OPEC exit

PHOTO

Most stock markets in the Gulf closed higher 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. 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. 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.

In Abu Dhabi, the share index rose 0.7%, lifted by a rally ‌in companies tied ⁠to oil major ⁠Abu Dhabi National Oil Company (ADNOC). ADNOC Drilling surged 8.1%, ADNOC Gas gained 3.7%, ADNOC Logistics & Services jumped 7.8% and Fertiglobe - the largest producer of nitrogen fertilisers in the Middle ‌East and North Africa - ended 10.3% higher.

Milad Azar, market ⁠analyst at XTB MENA, said the UAE's move raised hopes that higher long-term exports would support the market and the broader economy.

Meanwhile, Americana Restaurants International soared 12.4%, a day after reporting a steep rise in first-quarter profit.

Dubai's main share index edged 0.1% higher, helped by a 2% rise in toll operator Salik. Saudi Arabia's benchmark index gained 0.5%, led by a 2.4% rise in Saudi Telecom Company as the firm reported a rise in quarterly profit.

Oil major Saudi Aramco added 0.4%. Brent crude futures for June rose $3.33, ‌or 3%, to $114.60 a barrel, on media reports the U.S. ⁠will extend its blockade of Iranian ports, likely prolonging supply disruption from the Middle East producing region. The Qatari index eased 0.1%.

Outside the Gulf, Egypt's blue-chip index added 0.3%.