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

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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 ADX:FADGI advanced 0.8%, lifted by a rally in companies tied to oil major Abu Dhabi National Oil Company (ADNOC).ADNOC Drilling ADX:ADNOCDRILL surged 8.3%, ADNOC Gas ADX:ADNOCGAS advanced 3.1% and ADNOC Logistics & Services ADX:ADNOCLS 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 ADX:AMR soared 12.9%, a day after reporting a steep rise in first-quarter profit.Dubai's main share index DFM:DFMGI added 0.2%, with top lender Emirates NBD DFM:EMIRATESNBD rising 1.1% and toll operator Salik DFM:SALIK climbing 1.2%.Saudi Arabia's benchmark index TADAWUL:TASI rose 0.1%, led by a 2.4% rise in Saudi Telecom Company TADAWUL:7010 as the firm reported a rise in quarterly profit.By contrast, oil major Saudi Aramco TADAWUL:2222 eased 0.2%.The Qatari index QSE:GNRI 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 U.S. official said. Separately, the Wall Street Journal reported on Tuesday, citing U.S. officials, that he had directed aides to prepare for a prolonged blockade of Iran.

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