Topline
The United Arab Emirates has announced it will no longer be a member of the Organization of the Petroleum Exporting Countries, OPEC, starting May 1 after reflecting on its “long-term strategic and economic vision,” a move that could impact the group’s ability to control the supply of oil and prices around the world.
Tankers are seen at the Khor Fakkan Container Terminal in United Arab Emirates on June 23, 2025.
AFP via Getty Images
Key Facts
The UAE made the announcement to leave the so-called oil cartel via the state-run WAM news agency, and cited “near-term volatility” in the market and a desire to ramp up investment in domestic energy production.
The statement referred to the Iran war started by the U.S. and Israel in February, which has choked oil transport through the important Strait of Hormuz, and the government’s desire to meet what it thinks will be the “sustained growth” of energy demand in the medium to long term.
The nation’s decision to leave the group comes after it criticized fellow Arab states for not doing enough to protect the region from attacks during the Iran war started by the U.S. and Israel in February, and as it increasingly conflicts with Saudi Arabia, OPEC’s de facto leader.
UAE is the third-largest OPEC oil producer, behind Saudi Arabia and Iraq, and its decision to withdraw from the alliance signals internal disputes that could impact the group’s influence over global markets.
The United Arab Emirates will also leave OPEC+, a broader alliance formed in 2016 that encompasses OPEC’s 12 core members plus 10 other major producers, including Russia, Mexico and Kazakhstan.
This is a developing story and will be updated.
What To Watch For
Changing oil prices. The price of Brent crude rose 4% to above $105 a barrel Tuesday morning on news President Donald Trump is dissatisfied with Iran’s proposal to re-open the Strait of Hormuz, but then slipped to $104 per barrel after UAE announced it would leave OPEC. Brent’s price has risen about $10 in the last week.
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