The United Arab Emirates said on Tuesday it quit opec and OPEC+, a move that lands as Gulf producers struggle to ship exports through the Strait of Hormuz during the Iran war. The announcement comes as the region faces a historic energy shock and as the UAE has sharpened criticism of the response to Iranian attacks.
Anwar Gargash in Dubai
Anwar Gargash, the diplomatic adviser for the UAE president, had already set the tone a day earlier at the Gulf Influencers Forum. He said, "The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically". He added, "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".
Strait of Hormuz pressure
The UAE move lands against a narrow shipping route that handles a fifth of the world’s crude oil and liquefied natural gas. The Strait of Hormuz sits between Iran and Oman, and Iranian threats and attacks against vessels have affected exports through it. That makes any break in coordination among major oil exporters more consequential for how oil moves when the route is already under strain.
Trump on Opec prices
Donald Trump has also attacked Opec, accusing it of "ripping off the rest of the world" by inflating oil prices. He said that while the US defends OPEC members, they "exploit this by imposing high oil prices". Those remarks sit alongside the Gulf dispute over security and the first-quarter 2024 output cuts agreed by Saudi Arabia, Russia and other OPEC+ members.
Russia war day 1,066
The timing is tied to the 1,066th day of Russia’s full-scale invasion of Ukraine, when energy markets remain under pressure from war and shipping risk. For Gulf exporters, the immediate issue is not rhetoric but whether crude and liquefied natural gas can keep moving through the chokepoint that carries a fifth of global supply.
