The United Arab Emirates will exit OPEC on May 1, in a major blow to the cartel that coordinates production among many of the world's largest oil producers, particularly those in the Middle East.

The shock announcement Tuesday comes after the UAE was the target of missile and drone attacks for weeks by fellow OPEC member Iran. Tehran's attacks on shipping in the Strait of Hormuz has also severely constrained the UAE's ability to export oil, threatening the foundation of its economy.

The UAE has played an influential role in OPEC's decisions over nearly six decades. It was the group's third-largest oil producer in February behind Saudi Arabia and Iraq.…