The United Arab Emirates has announced it will withdraw from the OPEC effective May 1, marking a major shift in global oil politics and a significant blow to the oil-producing alliance.

The UAE said the decision followed a comprehensive review of its current and future production capacity and was driven by national interest, as well as the need to better respond to global energy market demands.

According to the country’s energy ministry, the move reflects a strategic reassessment of its oil policy amid mounting external pressures. The announcement comes after weeks of heightened regional tensions, including missile and drone attacks attributed to Iran and disruptions affecting the Strait of Hormuz, a critical route for global oil exports.

The UAE, one of OPEC’s key producers and the third-largest within the group as of February, has been a member since 1967. Its exit is expected to reshape internal dynamics within the cartel, which includes some of the world’s largest oil-producing nations.