The United Arab Emirates said that it was quitting OPEC and OPEC+, dealing a heavy blow to the oil-exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and unsettled the global economy.
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the group, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
If this were to happen, it could initially increase uncertainty in the global oil market because OPEC’s ability to coordinate production cuts or increases would be weakened.
That uncertainty, combined with ongoing disruptions in key shipping routes like the Strait of Hormuz, could push oil prices higher in the short term due to perceived supply risk.
However, the actual long-term price impact would depend on whether the UAE continues to independently manage its production at similar levels outside OPEC discipline.
UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters on Tuesday, April 28, 2026, that the decision was taken after a careful look at the regional power’s energy strategies.
Asked whether the UAE consulted with Saudi Arabia, he said the UAE did not raise the issue with any other country.
“This is a policy decision, it has been made after a careful look at current and future policies related to the level of production,” said the energy minister.
OPEC Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a choke point between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas normally passes, because of Iranian threats and attacks against vessels.
Mazrouei said the move would not have a huge impact on the market because of the situation in the Strait.
But the UAE exit from OPEC represents a win for U.S. President Donald Trump, who has accused the organisation of “ripping off the rest of the world” by inflating oil prices.
Trump has also linked U.S. military support for the Gulf with oil prices, saying that while the U.S. defends OPEC members, they “exploit this by imposing high oil prices”.
The move came after the UAE, a regional business hub and one of Washington’s most important allies, criticised 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, criticised the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday, April 27, 2026.
“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 said.
Source: Reuters.com
