UAE leave OPEC amid Hormuz crisis – Saudi Arabia faces fresh blow

UAE leave OPEC amid Hormuz oil crisis

The United Arab Emirates announced it will exit the Organization of the Petroleum Exporting Countries, citing escalating tensions in the Strait of Hormuz. Analysts warn the move could shave ↓ 0.5 million bpd from OPEC’s output, intensifying a market already jittery from the Iran‑Israel conflict. Energy traders scrambled for alternatives as shipments rerouted, while Saudi Arabia braced for a potential loss of regional leverage.

“The decision underscores a fracture within the cartel that could reverberate through global supply chains,” said a senior Bloomberg correspondent.

The exit follows a series of diplomatic flare‑ups that have stalled talks on production quotas. Reuters reported that the UAE’s share of OPEC’s oil basket stood at roughly ↑ 2% last year, making its departure a symbolic blow to the Saudi‑led bloc. The broader implications for oil prices remain uncertain, but market watchers expect heightened volatility as the Gulf navigates the crisis.