UAE Leaves OPEC

The United Arab Emirates has quit the OPEC oil cartel after 60 years of membership, marking a significant shift in global energy dynamics. This departure, from OPEC's third-largest producer, is expected to weaken the group's ability to influence oil prices through collective production decisions.

Multiple sources confirmed the UAE's exit, which comes during the biggest supply crisis in history. Global oil prices surged to their highest level in four years, with Brent prices rebounding amid fading hopes for a resolution to the US-Iran standoff.

Oil topped $125 a barrel this week, driven by expectations of a prolonged interruption of exports from the Persian Gulf. The US blockade on Iranian ports has contributed to these price increases, as negotiations show no sign of progress.

Trump warned that the US blockade on Iranian ports could last for months. Iran's supreme leader declared that the United States had suffered a defeat and rejected the warning. Iran stated it will not capitulate in the face of the blockade.

“Iran 'will not capitulate', conflict resolution expert says" — Oliver McTernan, director and co-founder of Forward Thinking, in an interview with FRANCE 24's Sharon Gaffney (France 24). The dual blockade of the Strait of Hormuz by the US and Iran has halted tanker traffic, exacerbating the crisis. Expectations for a temporary ceasefire leading to a durable settlement have evaporated. During the 1973/74 Arab oil embargo, it took three to six months for full impacts to affect users, leading to economic contraction.”

Global fuel shortages are projected to worsen over the summer as stocks of crude and refined fuels deplete. Oil prices have begun anticipating a more prolonged export interruption from the Persian Gulf. For oil-importing countries, including motorists and airline passengers, the worst impacts may still be ahead.