UAE Announces Withdrawal from OPEC Effective May 1

The United Arab Emirates announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), effective May 1, after nearly 60 years of membership. According to a statement from the UAE's energy ministry, the decision reflects the country's evolving energy profile and investments in domestic energy production.

The UAE was the third-largest oil producer in OPEC in February, behind Saudi Arabia and Iraq, with production figures reported by OPEC's monthly oil market report.

This announcement occurs amid regional conflicts, including missile and drone attacks on the UAE by Iran, another OPEC member. Iran's actions have included attempts to close the Strait of Hormuz, which have constrained the UAE's oil exports. The UAE's energy ministry statement did not reference the Gulf conflict, focusing instead on national interests and expressing appreciation for past cooperation with OPEC.

President Donald Trump commented on the UAE's decision during a White House event on May 3, 2026. According to a CNBC report, Trump said, "I think it's great. " Trump also linked the exit to potential reductions in energy prices, noting OPEC's challenges since the US-Iran conflict began in February, including a blockade of Iranian ports.

The UAE's withdrawal follows a series of exits from OPEC in recent years. The New York Times reported that this loss further weakens OPEC's influence on the global oil market. BBC News described it as the most significant exit in recent years, potentially affecting global energy markets.

Analysts cited in various reports, including unnamed sources in the Atlantic Council dispatch, noted that the decision could test OPEC's future cohesion and its control over production quotas.

Johns Hopkins economist Steve Hanke, in a Fortune article, described the exit as the UAE choosing to "take the money and run," emphasizing economic motivations following reviews of production policy and capacity. The New York Post reported that the decision could drive down gasoline prices by weakening the cartel's control.

The announcement intersects with broader regional dynamics. France 24 reported on Pakistan's role in US-Iran mediation, including demands for loan repayment, but did not directly link it to the UAE's OPEC decision. com noted that oil prices rallied toward $120 amid Middle East supply risks, though no specific connection to the UAE exit was detailed.

Iran's foreign ministry has not publicly commented on the UAE's withdrawal as of April 29, 2026, based on available reports. No publicly released evidence from US officials has documented claims of Iran's de facto closure of the Strait of Hormuz beyond initial Pentagon statements on attacks.