The United Arab Emirates announced Tuesday its decision to leave the Organization of the Petroleum Exporting Countries and the broader OPEC+ alliance, effective May 1. Energy Minister Suhail Mohamed al-Mazrouei conveyed the policy shift through the state-run WAM news agency, emphasizing the UAE's long-term strategic and economic vision, including accelerated investments in domestic energy production.

The UAE, which joined OPEC in 1967 through Abu Dhabi and has produced around 3.6 million barrels per day, about 12 percent of OPEC's output, cited the need for greater flexibility to respond to market dynamics and global demand. Officials stated the country made significant contributions and sacrifices to the cartels but now must prioritize national interests, investors, and stable energy markets. Post-exit, the UAE plans to gradually increase production in line with supply and demand, while continuing investments across oil, gas, renewables, and low-carbon solutions.

The move marks a major blow to OPEC, already strained by internal disagreements over production quotas and geopolitics. Long-simmering tensions with Saudi Arabia, OPEC's de facto leader, have grown over issues like Yemen policy, foreign investments, and regional responses to threats. The UAE has pursued an independent path, including closer ties to Israel and frustration with the Gulf Cooperation Council's handling of Iranian attacks.

The announcement coincides with stalled ceasefire talks between the United States and Iran amid their ongoing war, now in its second month. A fragile truce, initially agreed on April 8 and extended indefinitely by President Donald Trump, faces deadlock over the Strait of Hormuz. Iran has restricted the vital waterway, handling one-fifth of global oil trade, while the US enforces a blockade on Iranian ports. Tehran offered Monday to reopen the strait in exchange for ending the blockade and war, postponing nuclear discussions, but US Secretary of State Marco Rubio rejected any deal excluding Iran's nuclear program.

UAE Energy Minister al-Mazrouei noted that disruptions in the Arabian Gulf and Hormuz, linked to Iranian threats, limit the exit's market impact. The UAE has endured thousands of Iranian missile and drone strikes, prompting criticism of Arab states' responses. The decision aligns with Trump's long-standing criticism of OPEC for inflating prices and 'ripping off' consumers, positioning it as a strategic win for the US amid heightened Gulf vulnerabilities.

Oil markets showed a mixed reaction. Brent crude pulled back slightly after the news but remained about 3 percent higher for the day, up over 40 percent since late February strikes on Iran closed Hormuz flows. The OPEC basket stood at $83.37 per barrel on Tuesday. Analysts see the exit weakening OPEC's unity, potentially spurring more production and easing long-term pressures, though near-term volatility persists from the conflict.