Commodities April 28, 2026 08:28 AM

UAE Leaves OPEC and OPEC+ in Move That Stuns Oil Producers’ Bloc

Departure raises questions about cohesion in energy diplomacy as Gulf tensions and attacks on shipping persist

By Ajmal Hussain
UAE Leaves OPEC and OPEC+ in Move That Stuns Oil Producers’ Bloc

The United Arab Emirates announced on Tuesday that it has left both OPEC and the wider OPEC+ alliance, a development that removes a long-standing member from the groups and could weaken their ability to present a united position. The exit comes amid heightened regional tensions tied to Iranian attacks and threats against shipping in the Strait of Hormuz, and follows public criticism by a senior UAE adviser of Arab and Gulf responses to those attacks.

Key Points

  • The United Arab Emirates announced it has quit both OPEC and OPEC+, removing a long-standing member from the producer groups.
  • The exit occurs amid regional tensions and attacks that have disrupted shipping through the Strait of Hormuz, a vital conduit for about one fifth of global crude oil and LNG.
  • U.S. President Donald Trump framed the UAE departure as a political win, citing his long-standing criticism that OPEC inflates oil prices and benefits from U.S. military protection.

DUBAI, April 28 - The United Arab Emirates said on Tuesday it had withdrawn from OPEC and the OPEC+ coalition, a departure that represents a serious setback for the oil exporting organisations and their effective leader, Saudi Arabia. The exit of a longstanding OPEC member risks generating disunity within the group, which has historically aimed to display cohesion despite recurring internal disputes over geopolitics and production targets.

The UAE’s decision arrives at a time of heightened instability in the Middle East, where a war involving Iran has produced a significant energy shock that has unsettled the global economy. Gulf producers have been contending with threats to, and attacks on, vessels traversing the Strait of Hormuz - the narrow maritime chokepoint between Iran and Oman through which roughly one fifth of the world’s crude oil and liquefied natural gas typically moves - complicating export flows.

Observers note that the UAE’s departure could cause organisational strain for OPEC and OPEC+, reducing the collective leverage the groups have tried to maintain when coordinating production and communicating policy. The loss of the UAE, an influential Gulf producer, may amplify existing disagreements within the blocs over a range of matters including quota setting and geopolitical alignment.

The move was described in political terms as well. It was framed as a diplomatic rebuke after UAE officials publicly criticised fellow Arab states for what they saw as insufficient measures to protect Emirati assets and interests from repeated Iranian attacks during the conflict. Anwar Gargash, diplomatic adviser to the UAE president, voiced that criticism in a public forum.

"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.

U.S. politics intersected with the announcement. The UAE’s exit was characterised as a notable victory for U.S. President Donald Trump, who has accused the oil organisation of "ripping off the rest of the world" by keeping prices high. Trump has also argued that U.S. military defence of Gulf states is exploited by those governments through "imposing high oil prices," linking security commitments to perceptions of oil pricing behaviour.

The UAE departure reduces the number of unified voices within OPEC and OPEC+, and introduces new uncertainty into coordination among major producers at a moment when regional security risks continue to threaten shipping lanes and the steady flow of energy supplies. How the remaining members will respond structurally and politically to the absence of the UAE remains to be seen; the announcement itself underscores the fragility of cohesion in the producer groups amid overlapping security and diplomatic concerns.

Risks

  • Potential weakening of OPEC and OPEC+ unity, which may complicate coordinated production decisions - this impacts energy markets and oil prices.
  • Continued threats and attacks in the Strait of Hormuz that hinder shipments could further disrupt global oil and LNG supply chains - this affects shipping, trade, and energy-intensive sectors.
  • Heightened diplomatic friction among Gulf and Arab states arising from perceived inadequate collective defence could prolong regional instability, with knock-on effects for investor sentiment and global markets.

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