UAE announced withdrawal from OPEC and OPEC+

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The United Arab Emirates announced on Tuesday its withdrawal from OPEC and OPEC+, dealing a major blow to the oil exporting groups and their de facto leader, Saudi Arabia, as the war with Iran has triggered a historic energy shock and destabilized the global economy, Reuters reports, according to UNN.

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The stunning loss of the UAE, a long-standing OPEC member, could lead to chaos and weaken a group that has typically sought to project unity despite internal disagreements over issues ranging from geopolitics to production quotas, the publication writes.

Gulf oil producers within OPEC are already struggling with exports through the Strait of Hormuz—a narrow passage between Iran and Oman through which a fifth of the world's oil and liquefied natural gas typically flows—due to Iranian threats and attacks on vessels.

However, the UAE's exit from OPEC is a major victory for US President Donald Trump, who has accused the organization of "ripping off the rest of the world" by inflating oil prices, the publication notes.

Trump has also linked US military support for Gulf nations to oil prices, stating that while protecting OPEC members, the US is "being used by them to keep oil prices high."

The move comes after the UAE, a regional business hub and one of Washington's most important allies, criticized other Arab states for not doing enough to protect against numerous Iranian attacks during the war.

Anwar Gargash, diplomatic advisor to the UAE President, criticized the response of Arab and Gulf nations to the Iranian attacks during a meeting of the Gulf Influencers Forum on Monday.

"The Gulf Cooperation Council countries provided each other with logistical support, but in a political and military sense, I think their position was the weakest in history," Gargash said.

"I expected such a weak position from the Arab League, and it does not surprise me, but I did not expect this from the Gulf Cooperation Council, and it does surprise me," he added.

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