The United Arab Emirates has announced it is withdrawing from OPEC and the broader OPEC+, delivering a significant setback to the oil-producing bloc and its de facto leader, Saudi Arabia, at a time when the ongoing Iran war has triggered a major global energy shock.
The departure of the UAE, a longstanding member of OPEC, is expected to create uncertainty within the group, which has traditionally maintained a united front despite internal disagreements over geopolitics and production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision followed a strategic review of the country’s energy direction.
“This is a policy decision, it has been done after a careful look at current and future policies related to level of production,” said the energy minister.
When asked whether the UAE consulted with Saudi Arabia, he said the country did not raise the issue with any other nation.
The decision comes amid mounting tensions in the Strait of Hormuz, where Gulf producers have struggled to move exports due to Iranian threats and attacks on vessels. The strategic waterway typically handles about a fifth of the world’s crude oil and liquefied natural gas shipments.
Mazrouei downplayed the immediate market impact, citing the already volatile situation in the strait.
However, the move is seen as a geopolitical win for Donald Trump, who has repeatedly criticised OPEC for inflating oil prices.
Trump has also tied U.S. military support for Gulf nations to oil pricing, arguing that while the U.S. provides security, OPEC members “exploit this by imposing high oil prices”.
The UAE’s exit also follows growing frustration with regional allies during the conflict with Iran. The country, a major business hub and key U.S. partner, had criticised fellow Arab states for what it sees as inadequate support in the face of repeated Iranian attacks.
Anwar Gargash, diplomatic adviser to the UAE president, voiced those concerns during a session at the Gulf Influencers Forum.
“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 expect this weak stance from the Arab League and I am not surprised by it, but I haven’t expected it from the (Gulf) Cooperation Council and I am surprised by it,” he added
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