UAE announces exit from OPEC effective May 2026

The United Arab Emirates announced its exit from OPEC and OPEC+, effective May 1, 2026, dealing a significant blow to the oil-producing alliance and its de facto leader Saudi Arabia amid ongoing regional tensions. The UAE state news agency WAM reported that the decision follows a comprehensive review of the country's production policy, current capacity and future output plans, and reflects its national interest and commitment to meeting market needs during a period of disrupted energy flows through the Strait of Hormuz. The announcement frames the move as part of the UAE's long-term strategic and economic vision, including accelerated investment in domestic energy production and a shift toward lower-carbon barrels. The exit represents a victory for US President Donald Trump, who repeatedly accused OPEC of "ripping off the rest of the world" by inflating oil prices and linked American military support for Gulf states to their energy policies. The UAE has increasingly clashed with Saudi Arabia over economic issues and the war in Yemen against Iran-backed Houthis, while also criticizing fellow Gulf Cooperation Council members for what it described as a historically weak political and military response to Iranian attacks against UAE shipping interests. Iranian threats and attacks against vessels through the Strait of Hormuz, a narrow chokepoint through which a fifth of the world's crude oil and liquefied natural gas normally passes, have severely disrupted export operations. The UAE stated it will continue to act responsibly after leaving the producers' alliance, with any additional output brought to market gradually and in line with demand, while maintaining investment across oil, gas, renewables and low-carbon solutions. The departure of a longstanding member could create disarray within OPEC, which has typically sought to present a united front despite internal disagreements over geopolitics and production quotas. Analysts view the move as both an economic recalibration and a political statement amid shifting regional alliances and growing tensions with Iran.