The United Arab Emirates is leaving the oil producer group OPEC. The announcement comes as the war with Iran has created an energy crisis and exposed deep divisions among the Gulf states.

UAE’s Energy Minister Suhail Mohamed al-Mazrouei told Reuters that the decision was made after a review of the country’s energy policy strategy.

When asked whether the country had held talks with Saudi Arabia, which in practice leads OPEC, he said the issue had not been discussed with any other country.

“This is a political decision. It has been made after a careful review of current and future policy related to production levels,” al-Mazrouei told Reuters.

The UAE is also leaving OPEC+, the broader group which includes several oil-producing countries outside OPEC.

Challenging Conditions at the Strait of Hormuz

The background is an increasingly strained energy market. Several oil-producing Gulf states have struggled to transport exports through the Strait of Hormuz, between Iran and Oman, following Iranian threats and attacks on vessels.

Normally, around one fifth of the world’s crude oil and liquefied natural gas passes through the strait.

Al-Mazrouei states that the withdrawal is not expected to have any major immediate impact on the market, citing the already tense situation in the Strait of Hormuz.

Reuters describes the decision as a serious blow to OPEC, where the UAE has been a member for a long time. The group has often tried to present a united front, despite internal conflicts over, among other issues, geopolitics and production quotas.

Criticism of Gulf States

The decision also comes after the UAE criticized other Arab countries for not having done enough to protect the country from Iranian attacks during the war.

Anwar Gargash, diplomatic adviser to the President of the UAE, on Monday directed criticism at both the Arab world and cooperation among the Gulf states.

“The Gulf states supported each other logistically, but politically and militarily, I think their position has been the weakest historically,” Gargash said at the Gulf Influencers Forum.

He continued:

“I expect this weak stance from the Arab League and I am not surprised by it, but I did not expect it from the Gulf Cooperation Council and I am surprised by it.”

Seen as a Success for Trump

Reuters writes that the UAE’s withdrawal from OPEC can be seen as a success for US President Donald Trump, who has long criticized the organization for driving up oil prices.

In 2018, Trump accused OPEC of “ripping off the rest of the world” with high oil prices. He has also linked US military support for Gulf states to oil prices, saying that countries protected by the US are exploiting the situation by keeping prices high.

The UAE is a regional financial and business hub and one of the US’s most important allies in the region.

According to Mazrouei, :censored:6:cdd6bbaa89: energy demand is expected to continue rising. By staying outside OPEC and OPEC+, the country gains greater freedom to utilize its role as a producer of oil with low production costs and relatively low emissions.

According to Reuters, the country sees the decision as positive for both consumers and the world economy, as it can contribute to a more flexible and reliable energy supply.