UAE quits Opec; Musk and Altman appear in court

Happy Wednesday and welcome to your morning wrap of the latest business and political headlines from around the world.

First up, the United Arab Emirates has announced it is leaving Opec after almost 60 years, dealing a major blow to the oil cartel.

The Financial Times reported that the move by the Gulf state, which is Opec’s third-largest producer, underlines its long-running frustrations with the group of oil exporters over production quotas and its tensions with Saudi Arabia, which is the de facto leader of the group.

Firas Maksad, the Middle East director at political risk consultancy Eurasia Group, said the Emirates had not been happy to have to constrain oil production, particularly when they wanted to pump more, but the Saudis wanted to pump less.

“Some of the political differences have been amplified because of different positions on the war in reaction to the Iranian threat, with the UAE doubling down on the US and Israel, while others are diversifying and hedging.”

While all states in the region were angered by Iran’s missile and drone attacks, the UAE was the most hawkish towards Tehran. The attacks on shipping in the Strait of Hormuz have also severely constrained the UAE’s ability to export oil, threatening the foundation of its economy.

The UAE will also be leaving Opec+, which includes Russia, signalling Abu Dhabi’s frustration with Moscow’s support for Iran during the conflict.

UAE energy minister Suhail al-Mazrouei told the FT the move “was a sovereign national decision" grounded on the UAE’s long-term strategic and economic vision and evolving energy profile. "We’ve been active with the group and we’ve been supporting all of the decisions of the group, but it’s a time where we need to look at the future. The timing in our view is right because it has a minimum impact on all of the producers.”

Oil prices rose overnight following the announcement and a report from the New York Times that US president Donald Trump is dissatisfied with Iran’s proposal to reopen the Strait of Hormuz. Brent crude is back up nearly US$3 to US$111.20 a barrel.

Meanwhile, Wall Street’s main indices have all slipped into the red after a report from the Wall Street Journal which said that OpenAI had missed its new user and revenue growth targets. The report also said that OpenAI CFO Sarah Friar told leadership she was concerned the company may not be able to pay computing contracts in the future if its top line doesn’t expand faster.

Chip stocks, such as Nvidia, Broadcom, AMD and Intel, all fell following the report.

To the United States now, and King Charles is set to address Congress, where he will call for a reconciliation and renewal between the US and UK amid strained relations over the Iran war, the BBC reported.

Earlier, the King and Trump met in the Oval Office after the royals arrived at the White House for the second day of their state visit. It is the first time in two decades that a British monarch has made an official visit to the United States.

Staying in the US, former FBI director James Comey was indicted overnight over a photo of seashells that officials said threatened Trump, CNN reported.

James Comey.

The charges, which have yet to be made public, mark the second time that Comey has been indicted in a federal case since Trump came to power.

Last May, Comey posted a photo on social media of shells on a beach, writing out the numbers “86 47”, which critics said referred to taking out or killing Trump. When used as slang, the number 86 can refer to getting rid of or tossing something out, and Trump is currently the 47th president.

Comey posted the photo of the shells, writing in the caption, “Cool shell formation on my beach walk”.

Almost immediately after it was posted, Republicans and Trump administration officials criticised Comey, with then Department of Homeland Security Secretary Kristi Noem announcing Comey would be investigated by the Secret Service over what she said was a call for the assassination of the president.

He was investigated at the time, but no charges were immediately brought. A few months later, he was indicted in a Virginia court after being accused of making a false statement to Congress. The case was later dismissed.

In corporate news, OpenAI founders Elon Musk and Sam Altman appeared in court for opening statements in a high-stakes trial revolving around a bitter feud between the former friends, the Associated Press reported.

The civil lawsuit sees Musk accuse Altman and his top lieutenant, Greg Brockman, of double-crossing him by straying from the company’s founding mission to be a steward of a revolutionary technology. He is seeking damages to fund the altruistic efforts of OpenAI’s charitable arm and to oust Altman from the board.

OpenAI has brushed off the allegations as a case of sour grapes that’s aimed at undercutting the company’s rapid growth and bolstering Musk’s rival firm, xAI.

Musk’s lawyer, Steven Molo, said in his opening address that Altman and Brockman, aided by Microsoft, “stole a charity” whose mission was the “safe, open development of artificial intelligence”.

Meanwhile, OpenAI lawyer William Savitt told jurors, “We are here because Mr Musk didn’t get his way with OpenAI.”

After the opening arguments wrap up, testimony will begin, with Musk and Altman expected to testify.