UAE to leave OPEC
ft.com411 points by bazzmt 19 hours ago
411 points by bazzmt 19 hours ago
https://www.reuters.com/markets/commodities/uae-says-it-quit...
Context: (1) “The United Arab Emirates,” today “made a shock request of [Pakistan] — repay $3.5bn immediately” [1]. (2) Saudi-Emirati relations were at an all-time low before the Iran War [2]. (Saudi Arabia just bailed Pakistan out of its Emirati loan. Saudi Arabia and Pakistan agreed a mutual-defence treaty last year [3].) Put together, we’re seeing an Emirati-Israeli axis emerging to balance Saudi hegemony in the Gulf and Iranian hegemony over the Persian Gulf. I’d expect to see an Emirati deal with Egypt and India next if this hypothesis is correct. What I don’t yet see is the ambition of the endgame. Is it Saudi Arabia backing off in Africa? Or is it seizing the Musandam Peninsula, islands of the Strait and possibly even territory on the other side? [1] https://www.ft.com/content/99073d6e-4b57-417f-88fb-7a2c0e55e... [2] https://www.nytimes.com/2025/12/30/world/middleeast/yemen-sa... [3] https://en.wikipedia.org/wiki/Strategic_Mutual_Defence_Agree... Shouldn’t UAE be upset their entire economy has absolutely rammed by the war started by Israel? At least the Saudis have pipelines - UAE is fucked It's more complex than that. Saudi Arabia has the East-West Pipeline [1] that takes ~7Mbpd (million barrels per day) of oil to Red Sea ports to avoid the Strait of Hormuz. They were already using it so there's not a lot of extra capacity they can get out. If we continue up the escalation ladder, the next big risk is that the Houthis close Bab al-Mandab, which is a not-quite-as-narrow but still vulnerable chokepoint to the Red Sea. The UAE has the ADCOP (Abu Dhabi Cross Oil Pipeline) [2], which takes ~1.8Mbpd to the Gulf of Oman. This is beyond the Strait of Hormuz but not that far so technically is still vulnerable to drone attacks (in particular) from Iran if, again, we climb the escalation ladder. The real issue is American security guarantees to GCC nations have been shown to be an illusion. Heck, the US can't protect their own bases in the region. Also, the US can't protect maritime traffic through the Strait. I mean this is in all seriousness: there is no military solution to this problem short of the use of nuclear weapons. That means we are now in a situation where the US has to either split with Israel and offer Iran significantly better terms than they had before the war, likely including the lfiting of economic sanctions, or the US has to sit and watch the world plunge into recession and Asian countries in particular are going to burn. And who knows what a prolonged impasse will do to Europe, particularly come winter. So far, the US seems to prefer letting the world burn rather thans plitting with Israel. A protection racket ceases to be a protection racket if it no longer offers protection. [1]: https://en.wikipedia.org/wiki/East%E2%80%93West_Crude_Oil_Pi... [2]: https://en.wikipedia.org/wiki/Habshan%E2%80%93Fujairah_oil_p... > Asian countries in particular are going to burn They won't sit still, though. Eventually, if this were tried, we'd see Chinese-flagged tankers buying passage rights from Iran and being escorted by PLAN ships. No way does Commander TACO take that shot. The US interdiction threat in the gulf is empty, and everyone know it. Iran gets paid at the end of every story. The whole boondoggle has been a failure for the US in every analysis. >That means we are now in a situation where the US has to either split with Israel and offer Iran significantly better terms than they had before the war, likely including the lfiting of economic sanctions, or the US has to sit and watch the world plunge into recession and Asian countries in particular are going to burn. And who knows what a prolonged impasse will do to Europe, particularly come winter. I have the impression that somehow if the world will go into a recession, China will come out ahead. It looks like they either prepared for it or they have enough space to maneuver. UAE is the third largest producer in OPEC, and has options to avoid the straight, yet Their economy recently get shocked though by the war they wanted to avoid [flagged] Even when Israel strikes first, someone else started it. Brilliant! hmm isn't the whole thing a continuation of "revenge against hamas's attack on Oct 7th 2023" ? hamas being a proxy to iran, I don't get why people think iran as some "peace loving, innocent country" well, are they? raping/killing some *foreigners* and displaying their bodies as parade... well that's not very "peace loving and innocent" is it? When you make a ceasefire and then strike first, that’s called being the aggressor. How many civilians has Israel killed since oct 7? When is it enough? Israel killed >50k civilians since October 7 between all the conflicts Revenge is not a justification for destroying civilizations. Israelis also rape, kill, and do other vile things to prisoners, innocent or guilty, who they imprison with or without charge. > Israelis also rape, kill, and do other vile things to prisoners, innocent or guilty, who they imprison with or without charge. well but do israelis parade their dead rape victims openly? > When you make a ceasefire and then strike first well that's between trump and iran? did netanyahu agree? I agree that netanyahu is being a dick here: he should have focused on iran, instead of invading lebanon. That alone is a huge political/PR mistake but... how's that ceasefire related? is israel a proxy of usa? does Trump control israel directly? Ethically, the israel politicians goes at great length NOT to damage civilians: the walkie-talkie bomb is a classic example of "try to kill all the militants WITHOUT carpet bombing" (though they failed to "kill all" with that scheme, and... well they did bomb a lot after that) > well but do israelis parade their dead rape victims openly? 1) why is that an important distinction? 2) but since you asked, they do, western media just refuse to show it but all you need to do is follow a bunch of israeli instagram accounts and you'll see more than enough sooner rather than later > 2) but since you asked, they do, western media just refuse to show it but all you need to do is follow a bunch of israeli instagram accounts and you'll see more than enough sooner rather than later woah... big claims here! maybe you should post source? > well but do israelis parade their dead rape victims openly? Ah, this is where you draw the line? well where do YOU draw the line then? One side openly tries to do maximum death on everyone including infants (eg. fire random missiles, intifada, and the oct 7th attack) The other side at least tried their best NOT to attack back (expensive missile defense systems) or at least kill only the militants selectively (walkietalkie boomboom) I mean, you should be ashamed of even comparing israel vs iran/hamas/etc
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