Why the UAE is leaving OPEC

The United Arab Emirates (UAE) on Tuesday announced it is leaving the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, effective May 1. The move strips the oil cartel of one of its largest and most reliable producers, dealing a significant blow to group cohesion at a time when the ongoing U.S.-Israel war on Iran has triggered an energy shock and severely disrupted global oil flows through the Strait of Hormuz, a critical choke point.

In a statement carried by state news agency WAM, the UAE described the decision as reflecting its “long-term strategic and economic vision and evolving energy profile”. It cited the need for greater flexibility to invest in domestic energy production and respond independently to market conditions amid “near-term volatility”.