The United Arab Emirates announced Tuesday that it will leave OPEC effective May 1, ending its membership in the oil cartel after nearly six decades.
Oil prices rose sharply following the news and amid ongoing pessimism about prospects for ending the war between the U.S. and Iran and restoring the flow of commerce through the Strait of Hormuz. Brent crude oil was up about 3% to more than $111 a barrel, and West Texas Intermediate was up about 3.5% to almost $100 a barrel.
"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 country's energy ministry said in a statement. The UAE will also exit OPEC+, according to .