Old And New Gulf Faultlines Exposed By Iran War
Founded in 1960, O PEC is a rare success story among multilateral organizations in the region. Its policies paved the way for Gulf oil producers to have enough funds to buy back or renationalize their oil resources and finance the spectacular development of their states.
The organization has survived all major revolutions and wars in the region thus far, though Qatar left in 2019 when it was blockaded by its Gulf neighbors.
Saudi Arabia, the largest oil producer in OPEC, holds substantial leverage within the group. This has led to tension with the UAE, which has for some time pushed for higher production quotas for itself, given its spare capacity. These efforts have been to no avail.
However, its decision to leave OPEC is about more than merely frustration with the organization.
Though it was very close to Saudi Arabia in the mid-2010s, the UAE has in recent years drifted apart from its larger neighbor. This has been driven by a number of regional issues, including the countries' diverging strategies in wars in Yemen and Sudan, and their respective relations with Israel.
The UAE normalized relations with Israel in 2020, while the Saudis say they will only normalize once a Palestinian state is established.
The two countries have also recently become serious economic competitors. And although both states have been hit hard by Iran in the current war, the conflict seems to have accelerated their rivalry.
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