United Arab Emirates leaving OPEC, effective May 1

The United Arab Emirates introduced Tuesday that it’s going to exit OPEC on May 1, in a significant blow to the cartel that coordinates manufacturing amongst most of the world’s largest oil producers.

The UAE’s shock announcement comes after the Gulf state was the goal of missile and drone assaults for weeks by fellow OPEC member Iran. Tehran’s blockade of the Strait of Hormuz has additionally severely constrained the UAE’s capacity to export oil, threatening the muse of its financial system.

The UAE was the third-largest oil producer in OPEC in February behind Saudi Arabia and Iraq. It joined OPEC in 1967, seven years after the group was established.

“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” the UAE vitality ministry mentioned in an announcement.

This is breaking information. Please refresh for updates.