Brent crude prices have climbed to 2.4% this week, trading above $111 per barrel.
The 2.4% price spike in Brent crude is heavily influenced by the worsening security situation in the Middle East.
According to available reports, the US-Iran negotiations have reached a stalemate, with Washington reportedly rejecting a proposal from Tehran to end the blockade of the Strait of Hormuz in exchange for a full lifting of sanctions.
The Strait, which typically handles nearly 20–25% of global seaborne oil trade, remains under acute strain.
The World Bank has warned that if hostilities escalate or infrastructure suffers further damage, Brent prices could average as high as $115 per barrel throughout 2026.
This is also as the United Arab Emirates (UAE) has officially announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC)** and the wider OPEC+ alliance, effective May 1, 2026.
The exit marks the departure of one of the cartel’s most influential and high-capacity producers.
In an official statement from Abu Dhabi, the UAE cited a long-term strategic and economic vision focused on maximizing its sovereign production capacity and accelerating domestic energy investments.
The UAE noted that it has invested billions to increase its production capacity to 5 million barrels per day (mbpd), a target often frustrated by OPEC’s restrictive quotas.
By exiting, the UAE gains the flexibility to monetize its massive reserves more aggressively to fund its post-oil economic transition.
The UAE also emphasized that they will remain a responsible and reliable supplier, intending to increase production in a gradual and measured manner to meet global demand.