UAE Announces Withdrawal from OPEC and OPEC+ Amid Hormuz Crisis
The United Arab Emirates (UAE) officially announced on April 28, 2026, that it is withdrawing from the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, a decision that deals a significant blow to the oil cartel at a time when global energy markets are already under severe strain.
Exit Context: Strait of Hormuz Crisis
The UAE’s departure comes amid the ongoing Strait of Hormuz shipping crisis triggered by the Iran war. The world’s most critical oil transit route — carrying approximately 20% of global daily oil shipments — is currently severely disrupted, with Gulf producers struggling to export their petroleum.
Analysts note that the UAE is seeking greater production flexibility. Under the OPEC+ framework, member states are bound by production quotas, but the UAE has significantly expanded its oil production capacity in recent years and wants the freedom to set its own output levels. The current Hormuz crisis intensifies this imperative — even if the strait reopens, shipping insurance costs could surge to 20 times pre-war levels.
Impact on OPEC
As OPEC’s third-largest producer with daily output of approximately 3 million barrels, the UAE’s departure weakens OPEC+’s collective production coordination capacity and deepens fissures within the organization. Saudi Arabia, OPEC’s de facto leader, has already been struggling to balance market share and price stability objectives, and the UAE’s exit compounds these challenges.
According to The Washington Post, the withdrawal is described as “a blow to Saudi Arabia.” OPEC+, formed in 2016, has coordinated member production to stabilize global oil prices, but internal tensions have escalated in recent years, with multiple members dissatisfied with quota allocations.
Market Reaction
Following the announcement, international oil prices showed significant volatility. Brent crude and WTI futures both rose during intraday trading, reflecting market expectations of potentially major changes in global oil supply dynamics.
Energy analysts warn that the UAE’s exit could trigger a domino effect, with other quota-dissatisfied members potentially considering similar moves. This would have profound implications for global energy market stability and the future of OPEC+.
Geopolitical Implications
The UAE’s decision is not merely economic but reflects deep shifts in Middle Eastern geopolitics. Against the backdrop of the Iran war, Gulf states are reassessing their security strategies and energy policies. The UAE is seeking to reduce its dependence on collective security frameworks while pursuing greater autonomy on the international stage.
The UN Secretary-General has previously warned that the US-Iran standoff in the Strait of Hormuz risks triggering a global food emergency, underscoring the worldwide ramifications of regional instability. The UAE’s exit further complicates an already tense situation.
Sources: Al Jazeera | The New York Times | Fox Business