At a time when the Iran war has generated a historic energy shock and upset the world economy, the United Arab Emirates announced on Tuesday that it was leaving OPEC and OPEC+, dealing a severe blow to the oil-exporting groupings and their de facto leader, Saudi Arabia.
A longtime member of OPEC, the UAE’s departure could cause chaos and damage the organization, which has typically attempted to present a united face despite internal disputes over a variety of topics, including output limits and geopolitics.
Suhail Mohamed al-Mazrouei, the UAE’s energy minister, told reporters that the decision was made following a thorough examination of the regional power’s energy plans.
He responded that the UAE did not discuss the matter with any other nation when asked if it had consulted Saudi Arabia.
The energy minister stated, “This is a policy decision that has been made after a careful examination of current and future policies related to level of production.”
Iranian threats and attacks on vessels have already made it difficult for OPEC Gulf producers to make shipments via the Strait of Hormuz, a chokepoint between Iran and Oman that typically transports a fifth of the world’s crude oil and liquefied natural gas.
Mazrouei stated that, given the circumstances in the Strait, the move will not significantly affect the market.
However, U.S. President Donald Trump, who has accused OPEC of “ripping off the rest of the world” by increasing oil prices, has benefited from the UAE’s decision to leave the group.
Additionally, Trump has connected oil pricing to U.S. military assistance in the Gulf, claiming that OPEC countries “exploit this by imposing high oil prices” while the United States defends them.
The action was taken after the United Arab Emirates, a major business hub in the region and one of Washington’s most significant friends, chastised other Arab nations for failing to defend it against multiple Iranian attacks throughout the conflict adequately.
During a session at the Gulf Influencers Forum on Monday, Anwar Gargash, the president of the United Arab Emirates’ diplomatic adviser, criticized the Arab and Gulf response to the Iranian attacks.
“The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically.”
Gargash said. “I am not surprised by the Arab League’s weak stance, but I am surprised by the (Gulf) Cooperation Council’s weak stance,” he remarked.
