Effective May 1st, the United Arab Emirates will withdraw its membership from the Organization of Petroleum Exporting Countries, or OPEC.

The UAE stated the decision reflects its, quote, long-term strategic and economic vision.

This departure could potentially affect OPEC's capacity to regulate the global oil supply and prices.

The UAE made the announcement to leave the so-called oil cartel via the state-run WAM News Agency

and cited, quote, near-term volatility in the market and a desire to ramp up investment in domestic

energy production.

The statement referred to the Iran War started by the U.S. and Israel in February,

which has choked oil transport through the important strait of Hormuz,

and the government's desire to meet what it thinks will be the, quote,

sustained growth of energy demand in the medium to long term.

The nation's decision to leave the group comes after it criticized fellow Arab states

for not doing enough to protect the region from attacks during the Iran War started by the

U.S. and Israel in February, and as it increasingly conflicts with Saudi Arabia, OPEC's de facto

leader. The UAE is the third largest OPEC's de facto leader.

The UAE is the third largest OPEC oil producer, behind Saudi Arabia and Iraq.

And its decision to withdraw from the alliance signals internal disputes that could impact

the group's influence over global markets.

The United Arab Emirates will also leave OPEC Plus, a broader alliance formed in 2016

that encompasses OPEC's 12 core members plus 10 other major producers, including Russia, Mexico,

and Kazakhstan.

The price of Brent Crude rose 4% to above $105 a barrel Tuesday morning on news President

Donald Trump is dissatisfied with Iran's proposal to reopen the Strait of Hormuz,

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