India, April 28 -- The United Arab Emirates (UAE) announced on Tuesday that it will exit the oil cartel OPEC and the broader OPEC+ alliance effective May 1. The decision follows months of friction over production limits, with the UAE increasingly at odds with neighboring Saudi Arabia.

The decision comes at a time when the Iran war has already triggered a historic energy shock and unsettled the global economy.

The UAE's exit deals a major blow to OPEC+, the powerful alliance of oil-producing nations led by Saudi Arabia. As one of the group's longstanding members, the UAE's departure could weaken cohesion within the bloc and create fresh uncertainty around production strategies and global oil supply.

Despite often presenting a united fro...