The United Arab Emirates announced on Tuesday that it was leaving OPEC and OPEC+, dealing a severe blow to the oil exporting groups and their de facto leader, Saudi Arabia, at a time when the Iran war has caused a historic energy shock and roiled the global economy.
The shocking loss of the United Arab Emirates, an early OPEC member, could create chaos and weaken the group, which has typically tried to show a united front despite internal disagreements on a range of issues, from geopolitics to production quotas.
Gulf OPEC producers have already had difficulty transporting exports through the Strait of Hormuz, a narrow passage between Iran and Oman through which a fifth of the world's crude oil and liquefied natural gas normally passes, due to Iranian threats and attacks on shipping.
But the UAE's exit from OPEC represents a major victory for US President Donald Trump, who has accused the organisation of driving up oil prices.
Trump has also linked US military support for the Gulf to oil prices, saying that while the US protects OPEC members, they "take advantage of this by imposing high oil prices."
The move came after the United Arab Emirates, a regional business hub and one of Washington's most important allies, criticized Arab states for not doing enough to protect it from multiple Iranian attacks during the war.
Anwar Gargash, diplomatic adviser to the president of the United Arab Emirates, criticized the Arab and Gulf response to the Iranian attacks in a session at the Gulf Influencers Forum on Monday.
"The Gulf Cooperation Council countries supported each other logistically, but politically and militarily, I think their position has been the weakest historically," Gargash said.
"I expect this weak stance from the Arab League and I'm not surprised by it, but I didn't expect it from the (Gulf) Cooperation Council either and I'm surprised by it," he said.
