Khaberni - In a move described by the global press as "shocking" and "the largest of its kind in the history of the organization," the United Arab Emirates announced its withdrawal from the "OPEC" and "OPEC+" alliances, effective from May 1, 2026.
The decision came days after open US support for Abu Dhabi, amid the Iran war which closed the Strait of Hormuz. The following highlights what major global newspapers and magazines have covered about this withdrawal and its repercussions.
"The Economist" magazine: "UAE's withdrawal from OPEC may not shatter the club"
The magazine notes that OPEC will discuss during its meeting on April 29 the withdrawal of one of its oldest members, with the UAE leaving on May 1, just one day after the meeting. The direct cause returns to the war in Iran and the blockade of the Strait of Hormuz, which choked energy exports in the region and severely harmed the UAE and its Gulf neighbors, pushing the third largest oil exporter in "OPEC" to make an independent decision.
The magazine adds that the decision highlights long-standing tensions within the organization, exacerbated by the war. Despite the significance of the withdrawal, "The Economist" believes that this step "may not shatter the club," and that "OPEC" can continue despite this prominent split.
"Fortune" magazine: "The biggest split in OPEC history"
"Fortune" describes the decision as "a harsh blow to the organization and to Saudi Arabia, its de facto leader," and considers it the biggest split in "OPEC" history. The magazine notes that the decision came days after U.S. Treasury Secretary Scott Bisent endorsed a $20 billion US dollar swap line for Abu Dhabi. It emphasizes that the UAE's situation differs from previous withdrawals by Qatar and Angola, as it is the third largest producer in "OPEC". The disagreement between Saudi Arabia and the UAE had been escalating for years over production quotas and regional policy and intensified during the current war.
"Fortune" mentions that the governor of the Central Bank of the UAE sought during a visit to Washington to "support the stability of the regional financial system," while Bisent defended the arrangement before Congress promising assistance. The UAE had threatened to price some of its oil in yuan if dollar liquidity was reduced, which would have accelerated the erosion of "the petrodollar's" dominance.
Regarding the political background, the magazine states that the move reflects Abu Dhabi's frustration with the logistical rather than political and military support of Gulf countries. Conversely, the US conducted security talks with the UAE, Israel deployed "Iron Dome" on its territory for the first time in an active conflict, and the US expanded its military presence at Al Dhafra Base. The UAE also insisted that any US-Iran settlement guarantees freedom of navigation in Hormuz, granting it veto power over ceasefire negotiations.
As for the "petrodollar" system, "Fortune" says it is threatened, as the dollar's share in global reserves fell to 57% (the lowest level in 25 years). Iran charges ships in Bitcoin and increases its oil sales to China in yuan, prompting Deutsche Bank to warn that the current war could be "a catalyst for the beginning of the petroyuan era". However, experts warn against exaggeration, as Gulf wealth funds still invest more than $2 trillion in America, and Gulf currencies are tied to the dollar.
"The New York Times": "A strong blow to major oil producers"
The newspaper states that the UAE has dealt a strong blow to major oil producers by announcing its withdrawal from an organization that has sought for decades to control prices and supplies. It points out that "OPEC's" influence has recently declined with increased production in non-member countries, especially the United States. Before the war on Iran, the UAE was one of OPEC's largest producers after Saudi Arabia, Iraq, and Iran, producing about 3.6 million barrels per day (3% of global supply). Its current withdrawal does not affect prices because the war has forced Gulf producers to cut production, but it might increase volatility later.
"The New York Times" adds that the UAE gave less than a week's notice, announcing its departure on Friday, in a surprise that reflects the magnitude of the disruption. The UAE aims to increase its production capacity to 5 million barrels per day by 2027 and is expected to pump more once the Strait of Hormuz transit resumes. The UAE has a pipeline that bypasses the strait, but it was forced to reduce its production by more than a third in March, according to the International Energy Agency.
The newspaper quotes UAE Energy Minister Suhail Al Mazrouei as saying, "The world needs more energy and resources, and the UAE wanted not to be restricted by any groups," confirming that his country "will remain a responsible producer."
