The move is a significant blow to the global organization of major oil producers

The United Arab Emirates has decided to leave the Organization of the Petroleum Exporting Countries (OPEC), as well as OPEC+, the state Emirates News Agency (WAM) reports.

The withdrawal, which is set to come into force on May 1, is viewed as a serious blow to Saudi Arabia, the informal leader of OPEC.

The news comes amid a crisis in the Middle East triggered by the US-Israeli war against Iran, which resulted in the suspension of crude exports from the Persian Gulf and damage to Arab nations that host US military bases.

The statement expressed appreciation for cooperation within the organization and with members of OPEC+, which was formed in 2016 and includes Russia, Kazakhstan, Oman, Mexico, and other non-OPEC countries.

The UAE has consistently ranked behind fellow OPEC members Saudi Arabia and Iraq in terms of production quotas. Angola, Ecuador, Indonesia, and Qatar have withdrawn from OPEC in the past for various reasons, ranging from an unwillingness to pay membership fees to broader political tensions among Gulf nations in the case of Qatar’s 2019 decision to leave.

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Earlier on Tuesday, Brent crude price hit $110 for the first time in three weeks, as peace talks between US and Iran stalled, raising risks that the global supply of crude will remain throttled for the foreseeable future. The price decreased following the UAE’s announcement, but overall volatility persisted.