U.A.E.'s OPEC Exit Deals Major Blow to Cartel Amid Middle East Oil Squeeze

The United Arab Emirates said it would leave OPEC, dealing a heavy blow to the oil cartel as the war in Iran scrambles alliances and investment priorities among the world's top oil producers.

The sudden departure of OPEC's third-biggest producer further weakens a bloc that despite producing up to four out of every 10 barrels of oil pumped worldwide has been hobbled by internal disunity and the rise of American oil output.

The war in Iran has piled on more pressure by exacerbating rifts among the Arab countries at the core of the group and by closing the Strait of Hormuz, through which the group's biggest producers export most of their oil, making it impossible for the group to influence the market during its biggest supply shock.