Oil Prices Hold Gains as Middle East Risks Offset UAE Exit
Oil prices held gains as Middle East supply risks outweighed the UAE's exit from OPEC. Stalled peace talks kept the Strait of Hormuz closed to most shipping.
Brent Crude Oil rose 2.7% to $111.16 a barrel Tuesday as Middle East supply risks offset the United Arab Emirates exiting OPEC. Prices hit a seven-day winning streak while WTI briefly traded above $100 for the first time since April 13. Investors face a 24% price surge in 2026 if the Strait of Hormuz remains closed by regional conflict.
### Why the UAE Exit Failed to Cool Prices The United Arab Emirates announced its departure from OPEC and OPEC+ on Tuesday, a blow to the influence of Saudi Arabia. Again Capital partner John Kilduff said the exit could allow the United Arab Emirates to add 1 million to 1.5 million barrels per day of output. However, the ongoing closure of the Strait of Hormuz prevents this new supply from reaching global markets.
