Oil Falls, Asian Stocks Mixed as U.A.E.'s OPEC Exit Complicates Mideast Situation

Dow Jones11:50

By Sherry Qin

Oil fell and Asian stocks were mixed as hopes for an increase in oil supply from the United Arab Emirates' withdrawal from OPEC countered the sustained blockade of the Strait of Hormuz.

President Trump has instructed aides to prepare for an extended blockade of Iran, U.S. officials said, after assessing other options such as resuming bombing or walking away from the conflict, The Wall Street Journal reported.

Meanwhile, the U.A.E. said it would leave OPEC from May 1, dealing a heavy blow to the group, but raising hopes of easing the global oil crunch.

The Persian Gulf state, OPEC's third-biggest producer, could increase output independently to "cash in on the opportunity," as the U.S. naval blockade underpins oil prices above $100 a barrel, Phillip Nova market analyst Priyanka Sachdeva said in a note.

The U.A.E. is in a relatively privileged position with the ability to circumvent the blockade in the strait by routing more than half of its oil exports across the country through oil pipelines.

Front-month Brent crude oil futures were down 0.4% at $110.85 a barrel on Wednesday, while front-month WTI crude oil futures dropped 1.0% to $98.94 a barrel.

The U.A.E.'s exit from OPEC also marks a foreign policy win for the U.S., as losing one of the Middle East's top oil producers undermines OPEC's influence, Morningstar analyst Joshua Aguilar said in a note. Trump has repeatedly criticized the group for its efforts to support oil prices.

Asian stocks were mixed as investors assessed the Middle East situation while digesting a slew of earnings. South Korea's Kospi advanced 0.2% and Hong Kong's Hang Seng Index rose 1.4%. Singapore's FTSE Straits Times Index fell 0.6% and Taiwan's Taiex was down 0.4%.

Investors have started to look through the Middle East conflict as the optimism surrounding the artificial intelligence boom has overshadowed geopolitical tensions, analysts said.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 28, 2026 23:50 ET (03:50 GMT)

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Oil Falls, Asian Stocks Mixed as U.A.E.'s OPEC Exit Complicates Mideast Situation

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