The United Arab Emirates has announced its departure from both the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ effective this Friday. This decision comes amidst the Iran conflict causing significant disruptions in the energy sector and global economy. The UAE has been a longstanding member of OPEC since 1967, initially through Abu Dhabi and later as an independent country in 1971, and joined OPEC+ in 2016.
The withdrawal of the UAE could potentially disrupt and weaken the group, known for presenting a united front despite internal disagreements. Energy Minister Suhail Mohamed al-Mazrouei stated that the decision was made after careful consideration of the country’s energy strategies, without consulting other nations, including Saudi Arabia.
The UAE’s exit is not expected to heavily impact the market due to the ongoing challenges in the Strait of Hormuz, a critical passage for global oil and gas shipments. This move is seen as a victory for U.S. President Donald Trump, who has criticized OPEC for manipulating oil prices. The UAE’s decision follows its criticism of other Arab states for insufficiently defending against Iranian attacks during the conflict.
Anwar Gargash, diplomatic adviser to the UAE president, expressed disappointment in the response of Arab and Gulf states to the Iranian attacks, highlighting perceived political and military weaknesses. This development underscores the UAE’s stance as a significant regional player and ally of the United States.