The United Arab Emirates on Tuesday announced its exit from the OPEC and OPEC+, dealing a significant blow to the oil-producing blocs and their de facto leader, Saudi Arabia. The move comes amid the ongoing Iran war, which has triggered a severe energy shock and rattled the global economy.
The departure of the UAE, a long-standing member, threatens to disrupt cohesion within OPEC, which has historically projected unity despite internal disagreements over geopolitics and production quotas, news agency Reuters reported.
The situation is further complicated by rising tensions around the Strait of Hormuz. Gulf producers have already faced challenges in shipping exports due to Iranian threats and attacks on vessels. The UAE’s move is also seen as a strategic win for Donald Trump, who has repeatedly criticised OPEC for inflating global oil prices.
“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” UAE said in a statement.
Oil prices surged past the $110 per barrel mark on Tuesday, driven by escalating tensions between the US and Iran, along with the UAE’s latest decision. The global benchmark Brent crude hovered near a three-week high of around $112 per barrel, while US benchmark WTI traded close to the $101 per barrel level.
