Oil prices jumped by more than 3% in trading, affected by the almost complete blockage of the Strait of Hormuz and the faltering diplomatic efforts to end the war in Iran, which led to the obstruction of vital energy supplies from the Middle East, before gains were reduced relatively following the UAE’s announcement of its withdrawal from OPEC and the OPEC Plus alliance.
Brent crude futures rose by 3.1% to reach $111.60 per barrel, achieving gains for the seventh day in a row, while US West Texas Intermediate crude jumped by 3.7% to exceed the $100 barrier for the first time since mid-April.
This rise comes in light of American pessimism towards Iranian proposals to end the war, and Tehran’s insistence on closing navigation in the Strait of Hormuz, through which about 20% of global energy consumption passes.
In a surprising move, the UAE announced its withdrawal from “OPEC” and “OPEC Plus” starting from the beginning of May 2026, in a decision that the Emirates News Agency described as being in line with the “strategic and economic vision” of the country and accelerating investment in local production, which led to a slight calm in the pace of the rise in global prices.
