Trump's war against Iran, in collaboration with Israel, has continued to destabilize the global economy.
The war waged by US President Donald Trump against Iran in collaboration with Israel has not only destabilized the global economy, but has also started to create divisions within military and business organizations. The military organization 'NATO' (North Atlantic Treaty Organization) has come close to disintegrating. Similarly, a rebellion has started to emerge against its policies in the organization of petroleum exporting countries 'OPEC'.
A clear indication of this is the announcement of the United Arab Emirates (UAE) to withdraw from OPEC. After Venezuela, the UAE is the second country to opt out of OPEC. It is also a strange coincidence that the reason for Venezuela's decision was also the US and now the UAE has also taken its own independent decision influenced by American policies. The difference between the two decisions is that although Venezuela has not formally withdrawn yet, it is forced to sell its petroleum as per the instructions of the American administration, while the UAE has prioritized its business interests over any foreign pressure and has also advised two other countries in the Gulf region to adopt an 'independent approach'.
The OPEC organization was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The purpose of this establishment was to act as a cartel so that maximum profits could be made through the sale of crude petroleum. Over the following years, the number of member countries of this group increased to 12. After this, 'OPEC Plus' also came into existence and Russia and Kazakhstan became partners of this group. The US initially supported this organization, but now Donald Trump has been criticizing this organization on the grounds that its determination of quotas for each member country and keeping the price of crude petroleum high by creating artificial shortages through low production is a direct economic exploitation of countries that do not have petroleum, which should be stopped.
But what he could not do through his criticism, he has made possible through the war against Iran. This war has directly created a serious economic crisis for the entire Arab world. The major members of OPEC such as Iraq, Saudi Arabia, Kuwait, Oman and the UAE have been unable to produce petroleum as per the global requirements and send it to different countries of the world through the Persian and Oman Gulfs. Due to the standstill in sales, production has also stopped. As the war has dragged on for more than two months, the economic burden on them is continuously increasing. Difficult situations often give rise to selfish decisions. The decision of the UAE is also a product of such circumstances.
It is common in business and diplomatic circles that India is going to benefit the most from the UAE's decision. It is obvious that the Emirates will now be able to produce more petroleum than the quota set by 'OPEC' and sell it at a price fixed according to its wishes. That is why there are speculations that through this step, the prices of crude petroleum can be reduced by 5 to 10 dollars per barrel. India is the UAE's main trading partner.
It is already buying crude oil (petroleum) from it. Now that the 'quota' restriction has been lifted, the prospects of this purchase increasing rapidly and the supply being available at a price slightly cheaper than the world price are starting to look certain to become a reality. The UAE is not even compelled to send this oil through the Strait of Hormuz. The Abu Dhabi pipeline goes to the southernmost port of Fujairah in the UAE. This port is located in the Gulf of Oman and is quite far from the Strait of Hormuz. Overall, the situation that has arisen is beneficial for India as well as for its neighboring countries Sri Lanka and Bangladesh. It should be fully exploited.
