UAE To Exit OPEC, OPEC+ In Historic Move Amid Middle East Conflict

• The decision follows a review of the country’s production policy and capacity outlook, according to a statement on Tuesday.
• The U.A.E. said it will raise oil production gradually in line with market demand. 
• The country had reportedly criticized Arab states for failing to provide adequate support and protection against repeated Iranian attacks.

The United Arab Emirates has announced its exit from the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+) on Tuesday, in what could be a seismic shift for global energy markets, which have been under intense pressure since the Middle East conflict began late February.

The move underscores the U.A.E.’s long-term economic strategy and shifting energy priorities, including increased investment in domestic production, according to a statement. The decision follows a review of the country’s production policy and capacity outlook.

End Of A Near Sixty-Year Partnership

The move effectively ends a partnership spanning nearly six decades. The United Arab Emirates joined OPEC in 1967, seven years after the group was founded in Baghdad by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. After the U.A.E.’s exit, the organization will be down to 11 member nations.

The country said it will raise oil production gradually in line with market demand while continuing to work with partners to develop its resources and support growth. It added that the move does not change its commitment to global market stability or cooperation with producers and consumers. 

UAE Criticizes Arab States Amid Iran Shelling

According to a Reuters report on Tuesday, the stunning decision followed mounting frustration from the country, a key regional business hub and a close ally of the U.S., which criticized Arab states for failing to provide adequate support and protection against repeated Iranian attacks during the conflict.

On Monday, Anwar Gargash, an adviser to the U.A.E. president Sheikh Mohamed bin Zayed Al Nahyan, criticized how Arab and Gulf countries responded to the Iranian attacks during a session at the Gulf Influencers Forum.

“The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest ⁠historically. 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,” Gargash reportedly said.

Brent Crude Climbs Higher

Brent Oil Futures for July 2026 deliveries were up around 3% at $104.65 per barrel at the time of writing.

Brent crude prices have shot up more than 45% since the conflict began on Feb. 28, 2026, primarily due to the closure of the Strait of Hormuz, a critical oil corridor that handles nearly 20% of the global crude supply. 

At the time of writing, the United States Oil Fund (USO) gained 2.9%, the ProShares Ultra Bloomberg Crude Oil (UCO) climbed 2.4% higher, while Invesco DB Oil Fund (DBO) rose around 2%.

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