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Iran offers to reopen Strait of Hormuz
Iran has offered to end its chokehold on the Strait of Hormuz in exchange for the U.S. lifting its blockade on the country and an end to the war, while proposing that discussions on the larger question of its nuclear program would come in a later phase, two regional officials said Monday.
The United Arab Emirates announced it was leaving OPEC this week.
Here’s what to know about the organization and what UAE’s departure means:
What is OPEC?
Big picture view:
OPEC, or the Organization of the Petroleum Exporting Countries, was formed in 1960 as a reaction to Western domination of the oil industry.
OPEC sets production targets for its members in an effort to control the price of oil available on the global market.
Dig deeper:
The founding members of the organization were Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It has grown to since include:
- Qatar (since 1961, but left in 2019)
- Indonesia (1962-2009, rejoined briefly in 2016 but left)
- Libya
- United Arab Emirates (since 1967, but left in 2026)
- Algeria
- Nigeria
- Ecuador (1973-1992, 2007-2020)
- Gabon (1975-1995, rejoined in 2016)
- Angola (since 2007, but left in 2024)
- Equatorial Guinea
- Congo
UAE leaving OPEC
FILE - The national flag of the United Arab Emirates (UAE) on the roadside near to the Hassyan power and water production complex, operated by the Dubai Electricity and Water Authority (DEWA), in Dubai, United Arab Emirates. Photographer: Christopher …
What they're saying:
On Tuesday, the United Arab Emirates announced that it will leave OPEC effective May 1.
The country has pushed back against OPEC quotas in recent years, saying it felt they’ve been too low.
UAE Energy Minister Suhail Mohamed al-Mazrouei told Reuters the decision was taken after a careful look at the regional power's energy strategies.
"This is a policy decision, it has been done after a careful look at current and future policies related to level of production," said the energy minister.
For context:
The UAE's decision had been rumored as a possibility for some time, as it pushed back in recent years against OPEC production quotas it felt had been too low — meaning it wasn't able to sell as much oil to the world as it had wanted.
Reuters reported the UAE was OPEC’s fourth-largest producer.
What this means:
The UAE’s withdrawal from OPEC won’t necessarily have any immediate effects in markets, the Associated Press reported.
OPEC producers have been struggling to ship exports through the Strait of Hormuz amid the war in Iran, and much of the UAE’s supply would flow through there as well.
But the departure will weaken OPEC’s leverage over global oil supplies and prices.
Iran war energy crisis
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Oil prices fluctuate as Trump keeps Hormuz closed
We are learning more after reports from Pentagon officials that say forces from the United States military boarded a previously sanctioned oil tanker this week. The Pentagon said in a social media post that U.S. forces boarded the M/T Tifani "without incident." Early reporting indicates that the oil tanker was sanctioned for smuggling Iranian crude oil in Asia. LiveNOW’s Austing Westfall is getting the latest local reactions to fluctuating gas prices with Amalia Roy who is in Arizona. LiveNOW is also speaking with national security analyst, Hal Kempfer, as Trump says Iran "had a choice," and that "they have to negotiate."
Meanwhile:
World oil supplies are sharply constrained by the war in Iran, which has closed off the Strait of Hormuz, a waterway through which one-fifth of global oil supplies is transported.
By the numbers:
On Tuesday, Brent crude, the international benchmark, traded above $111 a barrel, or more than 50% above its prewar price.
The average price of regular gas in America on Tuesday, according to AAA, was $4.17 a gallon.
The New York Times reported that is the highest average since the war began, and an average price that has not been seen since April 2022, shortly after Russia invaded Ukraine.
The Source: Information in this article was taken from the Organization of the Petroleum Exporting Countries comments from UAE Energy Minister given to Reuters, and AAA. Background information was taken from The Associated Press and The New York Times. This story was reported from Detroit.