The United Arab Emirates announced its withdrawal from the Organisation of the Petroleum Exporting Countries (OPEC) on Tuesday. This move is a significant blow to OPEC and OPEC+, with implications for Saudi Arabia, their de facto leader. The decision comes at a time when the Iran war has caused a historic energy shock and unsettled the global economy.
The UAE’s exit could create disarray within the group, which has typically sought to present a united front despite internal disagreements over issues ranging from geopolitics to production quotas. OPEC Gulf producers have already been struggling to ship exports through the Strait of Hormuz due to Iranian threats and attacks against vessels.
This move is seen as a victory for US President Donald Trump, who has accused OPEC of “ripping off the rest of the world” by inflating oil prices. Trump has also linked US military support for the Gulf with high oil prices, stating that while the US defends OPEC members, they exploit this relationship by imposing high oil prices.
The UAE’s decision to withdraw from OPEC comes after a regional business hub and one of Washington’s most important allies criticized fellow Arab states for not doing enough to protect it from numerous Iranian attacks during the war. Anwar Gargash, the diplomatic adviser for the UAE president, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.
Gargash stated that while the GCC countries supported each other logistically, their political and military stance has been weak historically. He expressed surprise at fellow Arab states not taking a stronger position against Iran during the conflict.