Oil rises as Saudi Arabia and UAE reportedly weigh joining Iran war

Dow Jones03-24

MW Oil rises as Saudi Arabia and UAE reportedly weigh joining Iran war

By Nora Redmond

An Emirati military AH-64 Apache attack helicopter flies over Abu Dhabi on February 28, 2026. Saudi Arabia and the UAE reportedly are considering entering the fighting in Iran.

Oil prices rose Tuesday after a report revealed that two Gulf states are considering joining the war in Iran.

Brent crude futures (BRN00) (BRNK26) edged almost 2% higher to $101.56 a barrel, while West Texas Intermediate contracts (CL.1) climbed about 2% to $90.21 a barrel.

Both prices dipped sharply when President Donald Trump wrote in a post on Truth Social on Monday that the U.S. would be halting strikes on Iran's power plants for five days "subject to the success of the ongoing meetings and discussions."

He claimed that "very good and productive" talks had happened with Iran.

Optimism faded when Iran refuted the claims, with parliamentary speaker Mohammad Baqer Qalibaf calling the announcement "fake news" used by the president to "manipulate" markets.

"Obviously much now depends on the progress of any talks, and whether the more optimistic rhetoric is followed up by concrete action," Jim Reid, head of global macro research at Deutsche Bank, wrote in a note on Tuesday, adding that "some nervousness" had crept back into markets, sending Brent crude back past the $100 threshold.

Investors' concerns regarding the future of the war in Iran won't have been calmed by a Wall Street Journal report that U.S. allies in the Persian Gulf are edging closer to joining the conflict. Saudi Arabia and the United Arab Emirates are mulling helping efforts as their economies continue to be disrupted by the strikes and the effective closure of the Strait of Hormuz.

The report notes that neither has deployed their military openly yet, but pressure is increasing as Tehran continues to exert control across the region, with energy infrastructure targeted.

"The markets love hope, and the prospect of a ceasefire was enough to push Brent crude oil down 11% yesterday to below $100 a barrel for the first time in weeks," Emma Wall, chief investment strategist at Hargreaves Lansdown, said on Tuesday. However, Iran's denial and the Wall Street Journal report that the two Gulf states are getting closer to joining the fight, has sent oil back higher, she added.

-Nora Redmond

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 24, 2026 06:23 ET (10:23 GMT)

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Oil rises as Saudi Arabia and UAE reportedly weigh joining Iran war

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