![\"Dubai](\"https:\/\/images.unsplash.com\/photo-1512453979798-5ea266f8880c?w=1200&q=80\")
\n\n\n\nJUBA, South Sudan \u2014<\/strong> In a seismic shift for global energy markets, the United Arab Emirates announced on Tuesday that it is withdrawing from the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ alliance, effective May 1, 2026 \u2014 a historic break that analysts are calling the beginning of the end for the 65-year-old oil cartel.<\/p>\n\n\n\n The UAE, OPEC’s third-largest producer behind Saudi Arabia and Iraq, cited its long-term strategic and economic vision, seeking greater flexibility to increase oil production to meet growing global energy demand amid the ongoing Iran conflict that has disrupted Gulf shipping and sent energy prices soaring.<\/p>\n\n\n\n Brent crude surged above $118 per barrel<\/strong> on Wednesday, rising more than 6% in a single session, as the UAE’s exit compounded fears over the ongoing blockade of the Strait of Hormuz \u2014 a chokepoint through which about 20% of the world’s oil passes. International benchmark Brent crude has now posted gains in seven consecutive trading sessions and remains more than 80% higher since the start of the year, according to market data.<\/p>\n\n\n\n The price surge has already triggered emergency fuel relief measures across Africa. South Africa’s National Treasury extended a temporary reduction of the general fuel levy of R3 per liter into May and June, and cut the diesel levy to zero, as Brent crude trades well above $111 per barrel.<\/p>\n\n\n\n The UAE’s departure represents a significant blow to Saudi Arabia, which has long led the cartel in practice. Analysts say the move fractures Gulf unity at a moment of maximum tension, as the US-Israeli war with Iran enters its third month with no end in sight.<\/p>\n\n\n\n President Donald Trump, who has previously accused OPEC of “ripping off the rest of the world” by artificially inflating oil prices, welcomed the development. On Wednesday, Trump warned Iran to “better get smart soon” as his administration weighs military options to reopen the Strait of Hormuz, which Iran has blockaded since February.<\/p>\n\n\n\n Iran has indicated it is unwilling to negotiate on its nuclear program and is demanding payment for transit through the strait \u2014 a concession the United States has rejected.<\/p>\n\n\n\n The UAE joined OPEC in 1967, just four years before its founding as a nation. The Emirates holds the second-highest spare production capacity within the group and was regarded as the second most important swing producer, capable of increasing output to stabilize global prices.<\/p>\n\n\n\n The UAE has long been frustrated with its allotted quota under OPEC production limits. With massive investments to boost capacity in recent years \u2014 including new fields and advanced extraction technology \u2014 Abu Dhabi sees an opportunity to capitalize on the current crisis by ramping up production independently.<\/p>\n\n\n\n For East Africa and South Sudan, the combined shock of UAE’s OPEC exit and the Strait of Hormuz blockade poses grave economic risks. South Sudan, which relies heavily on imported petroleum products, faces soaring fuel costs that threaten to exacerbate an already dire humanitarian crisis. The cost of food, transportation, and basic goods is expected to rise sharply across the continent.<\/p>\n\n\n\n The African Union is convening emergency economic consultations this week, as the continent struggles with the cascading effects of the energy crisis.<\/p>\n\n\n\n The immediate question facing global markets is whether the UAE’s exit triggers a domino effect. Other OPEC members with spare capacity, including Iraq and Nigeria, may also reconsider their membership as the cartel’s ability to control prices rapidly erodes.<\/p>\n\n\n\n With Brent crude potentially heading toward the $120\u2013$130 range, the world faces an energy crisis not seen since the 1973 oil shock \u2014 this time compounded by active military conflict in the heart of global oil supply routes.<\/p>\n\n\n\n \u2014 JubaGlobal News Network<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" JUBA, South Sudan \u2014 In a seismic shift for global energy markets, the United Arab…<\/p>\n","protected":false},"author":1199,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[786,830,842,877,912],"tags":[931,932,927,930,928,926,925],"class_list":["post-7540","post","type-post","status-publish","format-standard","hentry","category-africa","category-breaking-news","category-economy-news","category-iran","category-qatar","tag-energy-crisis","tag-global-economy","tag-iran-war","tag-middle-east","tag-oil-prices","tag-opec","tag-uae"],"_links":{"self":[{"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/posts\/7540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/users\/1199"}],"replies":[{"embeddable":true,"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/comments?post=7540"}],"version-history":[{"count":0,"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/posts\/7540\/revisions"}],"wp:attachment":[{"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/media?parent=7540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/categories?post=7540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/directtopic.com\/jubaglobal.com\/wp-json\/wp\/v2\/tags?post=7540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Oil Prices Explode Past $118<\/h2>\n\n\n\n
A Blow to Saudi Arabia, A Win for Trump<\/h2>\n\n\n\n
Historic Shift: Nearly 60 Years of OPEC Membership<\/h2>\n\n\n\n
Impact on Africa and South Sudan<\/h2>\n\n\n\n
What Comes Next<\/h2>\n\n\n\n